PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT The Board is responsible for determining both the nature and extent of the Group’s risk management and internal control framework to ensure the Group remains resilient and sustainable. The Board Audit & Examination Committee and the Board Risk Committee assist the Board in discharging these duties. Accountability and Audit The Board is committed to providing a fair and objective assessment of the financial position and prospects of BIMB in the quarterly financial results, annual financial statements, Annual Reports and all other reports or statements to shareholders, investors and applicable regulatory authorities. Board Audit & Examination Committee (BAEC) The BAEC is established by the Board and comprises five (5) members, a majority of whom are INEDs. The Chairman of the BAEC is Datuk Bazlan Osman, who is appointed by the Board and is not the Chairman of the Board. None of the BAEC members is a former key audit partner. Collectively, the BAEC members have a wide range of relevant skills, knowledge and industry experience in discharging their duties. They provide sound advice to the Board on financial reporting, internal audits and the state of the Group’s risk and internal control environment. The BAEC also assists the Board, among others, to oversee the Group’s external and internal audit functions, and the relevant procedures to ensure compliance with the MMLR of Bursa Malaysia. Further details on the BAEC, its key activities and focus areas during the financial year under review are set out under the BAEC Report on pages 187 to 192 of this Integrated Annual Report. Risk Management and Internal Control Framework The Board acknowledges its responsibility to maintain a sound risk management and internal control system to manage and mitigate significant risks across the Group. To this end, the Board continues to be involved in determining the Group’s level of risk appetite and identifying, assessing and monitoring key risks to safeguard shareholders’ investments and the Group’s assets in a manner that enables the Group to meet its strategic objectives. For this purpose, the Board has established governance and processes for reviewing the effectiveness, adequacy and integrity of the Group’s internal controls and risk management. Whilst it is not possible to completely eliminate risks of failure in achieving the Group’s objectives, the system of internal controls is designed to mitigate these risks by identifying, managing and controlling risks, including operational risks. Board Risk Committee (BRC) The Board has established an effective risk management and internal control framework within the Group. The BRC and the Management Risk Control Committee (MRCC) are responsible for ensuring the adequacy and effectiveness of the Group’s risk management framework and policies. The BRC is established by the Board and comprises five (5) members, four (4) of whom are INEDs. The BRC is chaired by Azizan Ahmad, who is an INED. Two (2) members of the SSC of BIMB also attend the BRC as permanent invitees. The BRC assists the Board in meeting the expectations on risk management as set out by BNM and oversees the Management activities in managing the various risks the Group is subjected to and ensuring the effectiveness of the risk management process. Further details on BRC’s key activities during the financial year 2021 can be found in the CG Report. The Statement on Risk Management and Internal Control provides an overview of the Group’s risk management and internal control framework as well as the adequacy and effectiveness of the framework. Further details can be found on pages 193 to 208 of this Integrated Annual Report. PRINCIPLE C: BOARD INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIPS WITH STAKEHOLDERS Communicating effectively with Stakeholders BIMB acknowledges the importance of conducting effective and open communication with stakeholders to improve disclosure and transparency. The corporate website provides easy access to comprehensive and updated information on BIMB. As a listed issuer, the focus of BIMB’s engagement efforts will be on building confidence and maintaining strong transparent relationships with the investing community. This is done via the corporate website, half yearly briefings as well as other regular engagements and general meetings. INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 179
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