ENRA Group Berhad Annual Report 2019

46 ENRA GROUP BERHAD ∞ Annual Report 2019 page SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR (cont’d) Risk Management a) Recommended to the Board, improvements in internal control procedures and risk management. The Chairman of the Executive Risk Management Committee (“ERMC”) updated the ARMC quarterly on the risk profiles and risk management of the Group. b) Reviewed the effectiveness of the risk management system and the risk assessment reports from the ERMC. Significant risk issues were summarised and communicated to the Board for consolidation and resolution. Compliance and Others a) Received updates on Group IT’s initiatives. b) Reviewed and approved the proposed Policy on Non-Audit Services by external auditors. c) Reviewed the related party transaction and recurrent related party transactions of revenue or trading nature entered into by the Group. d) Reviewed the Corporate Governance Overview Statement, Audit and Risk Management Committee Report, Statement on Risk Management and Internal Control and the Sustainability Statement before recommending the same to the Board for approval and publication in the Annual Report. e) Reviewed the half-yearly report on the status of compliance of the Group’s Code of Business Conduct to ensure any non-compliance is properly investigated. f) Received quarterly reports on whistleblowing issues to ensure actions were taken on any cases reported. No whistleblowing case was reported during the financial year under review. INTERNAL AUDIT FUNCTION At present, there is an in-house Internal Audit function. The Internal Audit function operates within the framework of the International Professional Practices Framework by the Institute of Internal auditors as stated in its Internal Audit Charter, which is approved by the ARMC. The Internal Audit function provides the ARMC with independent opinions of processes, risk exposure and systems of internal control using the Committee of SponsoringOrganization of theTreadway Commission Internal Control – Integrated Framework as a guide. The Internal Audit function assesses the Group’s Internal Control system according to the following five interrelated control elements: • Control Environment • Risk assessment • Control Activity • Information & Communication • Monitoring Audit and Risk Management Committee Report