Yinson Annual Report 2020

174 Yinson Holdings Berhad SECTION 6 GOVERNANCE & LEADERSHIP statement on Risk Management and Internal Control Review and monitoring process The following meetings take place to monitor and review the Group’s operations and performance, including financial results and forecasts for all business operations: • Regular management meetings between respective MC members and mid-level management teams • Monthly management accounts reporting by the Finance Department • Periodical MC meetings • Quarterly Board and AC meetings with MC Recurrent Related Party Transactions (“RRPTs”) • RRPTs are dealt with in accordance with Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad • A summary of the RRPT Register is tabled for AC’s review on a quarterly basis Internal Audit Function The Group has an independent internal audit department which updates the Board, through the AC, on the adequacy and effectiveness of the Group’s system of internal control and management information system. An external service provider, EY has been appointed to co-source internal audit engagements to attain additional business insights and gain access to competencies and resources to match the Group’s expanding operations. The internal audit function adopts a risk-based approach when executing the internal audit plan, focussing on the Group’s business units and functions. The internal audit function reports the outcome of its appraisal directly to the AC via internal audit reports. The internal audit function also conducts follow-up reviews on the status of Management’s action plans. BOARD’S COMMENTARY For the financial year under review and up to the date of this statement for inclusion in the Annual Report, the Board considers the system of risk management and internal controls described in this statement to be satisfactory and has not resulted in any material loss, contingency or uncertainty, and risks are reasonably managed within the context of the Group’s business environment. The Board is not aware and has not been made aware of any material weaknesses or lapses in the internal control system of the Group occurring within the financial year under review. The Board has received assurance from the Group CEO 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 and MC will continue to take measures to strengthen the Group’s risk management and internal control system. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS As required by Paragraph 15.23 of the MMLR of Bursa Securities, the external auditors have reviewed this Statement on Risk Management and Internal Control. Their limited assurance review was performed in accordance with Audit and Assurance Practice Guide (“AAPG”) 3 issued by the Malaysian Institute of Accountants. AAPG 3 does not require the external auditors to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Company. This Statement on Risk Management and Internal Control was made in accordance with a resolution of the Board on 28 April 2020.