43 CORPORATE GOVERNANCE Sustainability Report (Cont’d) RISK MANAGEMENT ENRA has sound risk management framework and systems of internal control to safeguard shareholders’ investment and the Group’s assets, including EESG risks. The Board ensures the adequacy, effectiveness and integrity of the internal control systems through regular reviews, accompanied by ongoing risk management process. Risk management deliberations, including EESG risks, involving the Board are done every quarter of the year. Readers can view how ENRA implements the its risk management framework and systems of internal control in the Statement of Risk Management and Internal Control (“SORMIC”) of ENRA’s AR2024, from pages 83 to 88. LEGAL COMPLIANCE ENRA remains committed to strict compliance with its established policies, protocols, industry standards, and applicable laws. This commitment to regulatory compliance is upheld through a combination of internal audits and external audits conducted within specific business divisions. Hence, in FYE 2024, the Group remained free from any regulatory censures or fines resulting from non-compliance with environmental, social, or economic laws, regulations, or standards. Additionally, there were no regulatory actions taken against the Group in the areas of corporate integrity, anti-corruption, or corporate governance. • COMPLIANCE PROGRAMMEES In FYE 2024, the Internal Audit team completed a holistic Corporate Governance Review of ENRA with reference to the Malaysian Code of Corporate Governance 2021. EESG updates and reporting in line with the Main Market Listing Requirements as a guideline, a routine audit of the oil & gas division and the property division and a follow-up audit, and assessment on the Code of Business Conduct in accordance with the ARMSC” s approved annual review schedule. The area of coverage is aligned with the Group’s Risk Management assessment covering Finance, Human Resource, Operations, Procurement, Inventory, General IT, Sales, Marketing, Fraud Assessment and Project Management. The scope of this review encompassed various areas aligned with the Group’s Risk Management assessment, including Finance, Human Resources, Operations, Procurement, Inventory, General IT, Sales, Marketing, Fraud Assessment, and Project Management. The Group also proactively enhances its employees' knowledge and awareness through a series of training sessions and the regular dissemination of digital legal alerts Quality, Health, Safety, and Environmental (“QHSE”) Share Points, GHCA internal memos, as well as Group Commercial’s training and Procurement’s compliance checks. These initiatives are conducted in addition to the GCGD’s annual programmes. Annual compliance reviews are conducted on all key departments and subsidiaries to assess the practices and performance of their respective functions, ensuring alignment with existing Group policies and procedures. These reviews help identify areas for improvement. The compliance activities that have taken place include: I. QHSE Compliance Activities Building upon the previous years, the central focus of the QHSE function was on Ratu ENRA, the chemical tanker currently operating under the Malaysian flag and owned by the Group's oil & gas subsidiary, first ENRA SPM Sdn. Bhd. (“ESPM”) and now, Hexagon Marine Logistics Labuan Ltd. (“HMLLL”) in FYE 2024. In addition to the various Group-level compliance instruments, specific instruments tailored for the operations of Ratu ENRA were also implemented, including: a. ENRA Permit-to-Work (“PTW”) System A PTW system is a formal, documented system essential for controlling specific types of work. It plays an integral role in establishing a safe working environment and is especially vital for efficiently managing a wide array of activities that often occur in close proximity within confined spaces. Ratu ENRA has developed a customised PTW system tailored to its operational and maintenance needs. This system is mandatory for all tasks and activities conducted on Ratu ENRA. To ensure comprehensive understanding and adherence to the PTW system, all crew members are required to undergo PTW training and successfully pass the PTW assessment before commencing any work.
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