Yinson Annual Report 2018

Governance Statement on Risk Management and Internal Control (Cont’d) BOARD RESPONSIBILITY (CONT’D) 2. Internal Control Structure (Cont’d) • Monthly Management Accounts The Finance Department monitors the activities and performance of the subsidiaries through the monthly management accounts and ensures accounting and disclosure practices comply to the Group’s requirements and relevant accounting standards. • Operations Review and Monitoring Operations review of the Group are constantly monitored by the Board and Audit Committee with up-to-date reports provided by MC. The MC meets periodically to assess, evaluate and discuss the daily operations and performance of the Group, including tabling issues within the business for deliberations within the MC. Regular management meetings are held between the respective members of the MC and the mid-level management team to assess performance of respective business units. • Recurrent Related Party Transactions All recurrent related party transactions (“RRPTs”) are dealt with in accordancewith theMainMarket ListingRequirements of Bursa Malaysia Securities Berhad (“Listing Requirements”) and a summary of RRPT Register is tabled for Audit Committee’s review and monitoring on quarterly basis. BOARD’S COMMENTARY ON THE SYSTEM OF RISK MANAGEMENT AND INTERNAL CONTROL The Board has received assurance from the Group Chief Executive Officer and Group Financial Controller that the Group’s risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control systems of the Group. The Board is of the view that the risk management and internal control systems in place for the financial year under review and up to the date of approval of this statement for inclusion in the annual report is adequate and effective to safeguard the shareholders’ investment, the interest of customers, employees and other stakeholders, and the Group’s assets. INTERNAL AUDIT FUNCTION The Group has in place an independent internal audit department, which provides the Board through the Audit Committee, the state of adequacy and effectiveness of the Group’s system of internal control and management information system. Since July 2017, an external service provider was appointed to co-source internal audit engagements in order to attain additional business insights and gain access to competencies to better match the Group’s expanding operations. The internal audit function adopts a risk-based approach in executing the internal audit plan that focuses on various business units and functions within the Group. The internal audit function reports directly to the Audit Committee on the outcome of its appraisal of the risk management and internal control activities. The internal audit plan is reviewed and approved by the Audit Committee. According to the approved internal audit plan, the internal audit reports were submitted and presented to the Audit Committee to review the audit findings and action plans taken by Management to address the audit findings and concerns raised in the internal audit reports. The internal audit department also follows up on the status of Management’s action plans on internal audit findings. During the financial year under review, the Board is not aware and has not been made aware of any material weaknesses or lapses in internal control system of the Group. The Board continues to take measures in strengthening the risk management and internal control system of the Group. 80 Yinson Holdings Berhad Annual Report 2018