Our Governance DAGANG NeXCHANGE BERHAD 172 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL SEGMENT KEY INTERNAL CONTROL ELEMENTS Delegation of Authority DNeX Group defines clear lines of role, responsibility and authority to facilitate swift response in the evolving business environment. Thus, the Board’s approving authority on certain activities are delegated to the Management through a clearly and formally defined Discretionary Authority Limits (“DAL”). The DAL provides the primary governance framework for DNeX Group as the Board formally delegates specific oversight and supervisory functions and controls to the Management to more efficiently manage the business decision making process within DNeX Group. It defines a sound framework of authority, accountability and segregation of duties to facilitate effective decision making at the appropriate level. Nonetheless, the key matters are still reserved for the Board’s consideration and decision making. The DAL is subject to reviews and enhancement to reflect continuous improvements in tandem with emerging risks and operational issues. Internal Control System Policies and Procedures Elements of internal control have been embedded and documented in the form of policies and procedures. A set of Group level policies and procedures complete with clear responsibility and accountability are maintained and accessible to employees via an internal portal. To strengthen consistent revision and adoption of Group’s policies and procedures, the Risk and Business Process Management Department has an oversight in the customisation and adoption of internal control policies across DNeX Group. The approved policies and procedures will be reviewed and updated on a regular basis to ensure continuous improvements in operational efficiency while taking into consideration the changing operational profile, risks and internal control measures. Code of Conduct The Code of Conduct contains policies and guidelines relating to the standards and ethics that all employees are expected to adhere to in the course of their work. It is designed to maintain discipline and order in the workplace among employees of all levels. It also sets out the circumstances in which such employees would be deemed to have breached the Code of Conduct and the actions that can be taken against them if they do so. All employees are strictly required to adhere to DNeX Group’s Code of Conduct in order to ensure a high level of discipline and integrity in carrying out duties. Anti-Bribery and Anti-Corruption Framework and Policy (“ABAC”) Following the enforcement of Section 17A of the Malaysian Anti-Corruption Commission Act 2009 and the Malaysian Anti-Corruption Commission (Amendment) Act 2018 that took effect on 1 June 2020, the Board had on 29 May 2020 approved the ABAC to ensure that adequate procedures are in place to prevent persons associated to DNeX Group from undertaking such conduct of corruption and bribery. Any type of corruption and bribery of any nature, directly or indirectly, in order to influence any type of decision that may result in an undue benefit or advantage to DNeX Group will not be tolerated. The key features of the ABAC are measures established to control such misconduct at strategic, tactical and operational levels. It outlines the actions that need to be taken to prevent, detect and report potential threats and any corruption risks. It serves to reinforce DNeX Group’s commitment to good governance and transparency, and shall further guide how employees and related parties shall continue to conduct business with honesty, fairness and high ethical standards, and not allowing certain types of behaviour contrary to commercial integrity which can compromise DNeX Group’s reputation.
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