2020 UEM Edgenta Annual Report

With cloud computing, the Group does not have to deploy extensive hardware, configure and manage networks and infrastructure in IoT deployments. As a result, this has helped to speed up development processes while cutting down on development cost. The investment in cloud computing also offers the Group the ability to better oversee and manage a variety of its core business operations. Processes and policies surrounding cloud computing are in place to ensure the integrity and safety of data of both the Company and users. DISASTER RECOVERY PLANNING Disaster Recovery Planning for the Group is a subset of BCM. Data, systems and applications that are stored in the cloud ensures it is backed up and protected in a secure and safe location. Being able to access company’s data again quickly allows us to conduct business as usual, minimising any downtime and loss of productivity. INTERNAL AUDIT The Group has established its own Internal Audit Department (“IAD”) to carry out internal audit function of the Group. IAD reports functionally to the Audit Committee (“AC”) and administratively to the MD/CEO. The IAD regularly reviews the Group’s systems of internal controls and evaluates the adequacy and effectiveness of the controls, risk management and governance processes implemented by the management. The reviews conducted are based on the risk-based Annual Audit Plan approved by the AC. The results of audit reviews, including status of management action plans to address gaps identified in the governance processes, risk management processes and controls during the engagements are reported regularly to the AC for deliberation. The Group has also established a Management Audit Committee (“MAC”) to ensure effective actions are taken to address internal control weaknesses and proper closures of all audit issues and areas for improvement highlighted by the IAD. The MAC is chaired by the MD/CEO and holds its meetings regularly. Internal control weaknesses and areas for improvement regarding risk management and governance identified during the financial period under review have been or are being addressed by the management. None of the weaknesses have resulted in any material loss that would require disclosure in the Group’s financial statements. OUR SUSTAINABILITY COMMITMENT We provide the Asset Management and Infrastructure Solutions segments with solutions built on technology and knowledge of our people. We are determined to preserve the economic value and benefits of critical infrastructure and other assets under our care, making it sustainable for our future generations. In undertaking our sustainability commitment, UEM Edgenta and its subsidiaries are guided by its Sustainability and Corporate Responsibility Policies. Both the mentioned policies are accessible in the Company’s website at www.uemedgenta.com. The Group also adopts Bursa Malaysia’s Sustainability Reporting Guide & Toolkits and the Global Reporting Initiatives (“GRI”) Standards to report its Economic, Social and Governance (“ESG”) performance on material matters of our businesses and value chain in the annual report which is accessible in the Company’s website at www.uemedgenta.com. ASSURANCE FROM MANAGEMENT The Board has received assurance from the MD/CEO and Chief Financial Officer that a review on the adequacy and effectiveness of the risk management framework and internal control system has been undertaken and the Group’s risk management and internal control system are operating adequately and effectively, in all material aspects, based on the risk management and internal control system of the Group. UEM EDGENTA BERHAD 146 Governance STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL