Yinson Annual Report 2021

174 YINSON HOLDINGS BERHAD SECTION 06 : GOVERNANCE 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: t 3FHVMBS NBOBHFNFOU NFFUJOHT CFUXFFO SFTQFDUJWF .$ NFNCFST BOE NJE MFWFM NBOBHFNFOU UFBNT t .POUIMZ NBOBHFNFOU BDDPVOUT SFQPSUJOH CZ UIF 'JOBODF %FQBSUNFOU t 1FSJPEJD .$ NFFUJOHT t 2VBSUFSMZ #PBSE BOE "$ NFFUJOHT XJUI .$ Recurrent Related Party Transactions (“RRPTs”) t 3315T BSF EFBMU XJUI JO BDDPSEBODF XJUI .BJO .BSLFU -JTUJOH 3FRVJSFNFOUT ..-3 PG #VSTB Malaysia Securities Berhad. t " TVNNBSZ PG UIF 3315 3FHJTUFS JT UBCMFE GPS "$ SFWJFX PO B RVBSUFSMZ CBTJT 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. EY has been appointed to co- source internal audit engagements to attain additional business insights and gain access to competencies to better match the Group’s expanding operations. The IA function adopts a risk-based approach when executing the internal audit plan, focusing on the Group’s business units and functions. The IA function reports the outcome of its appraisal directly to the AC via internal audit reports. The IA function also conducts follow-up reviews on the status of Management’s action plans. However, effective 1 January 2021, the Head of Internal Audit has resigned and the Management will continue the outsourcing of IA function with EY. BOARD’S COMMENTARY For the financial year under review, 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 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 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 Listing Requirements, the external auditors have reviewed this Statement pursuant to the scope set out in the Recommended Practice Guide (“RPG”) 5 (Revised): Guidance for Auditors on Engagement issued by the Malaysian Institute of Accountants. RPG 5 does not require the external auditors to consider whether this Statement covers all risks and controls or to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Group. This Statement on Risk Management and Internal Control was made in accordance with a resolution of the Board on 28 April 2021.