UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 GOVERNANCE 151 150 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL INTRODUCTION In accordance with the practise set out in the revised Malaysian Code on Corporate Governance issued on 28 April 2021, a listed company should establish an effective risk management and internal control framework. The Board of Directors (“Board”) is pleased to provide this Statement on Risk Management and Internal Control pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and as guided by The Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers. Responsibility of the Board Board and Board Committees General Management Committee The Board affirms its commitment and responsibility in maintaining a sound and effective system of risk management and internal control in safeguarding shareholders’ interests and the Group’s assets. The Board is constantly and actively identifying the Group’s level of risk tolerance, assessing and monitoring the key business risks. The risk management and internal control system adopted by the Group are reviewed and updated periodically to align with the dynamic changes in the business operating environment as well as changes in regulatory requirements. The Board acknowledges that the risk management and internal control system are designed to manage and reduce the risk of not achieving business objectives and can only provide reasonable and not absolute assurance of effectiveness against material misstatement of management and financial information and records, financial losses or fraud or any occurrences of unforeseeable circumstances. For the financial year under review, there are ten (10) Directors on the Board comprising one (1) Managing Director/Chief Executive Officer (“MD/ CEO”), six (6) Independent NonExecutive Directors and three (3) NonIndependent Non-Executive Directors. The Board is supported by a number of established Committees, namely the Audit Committee (“AC”), Board Governance and Risk Committee, Nomination and Remuneration Committee, Board Tender Committee (“BTC”) and Board Investment Committee (“BIC”) which examine all matters within its scope and responsibilities, and report to the Board with its recommendations for the Board’s decision. The responsibilities and functions of the Board, each of its committees and the individual directors are specified in its respective Terms of Reference and Board Charter. The General Management Committee (“GMC”) is chaired by the Managing Director/Chief Executive Officer and comprises the management team members from respective divisions. The key role of the GMC is to drive strategic execution, deliberate and resolve the Group’s key strategic and operational issues in a timely manner and keep track of key business developments. The GMC also serves as a platform to monitor the Group’s strategic direction and for members to report on their respective business and operation plans to the Managing Director/Chief Executive Officer, highlight issues and devise solutions/ corrective plans, as well as address other matters as directed by the Board and/or the Managing Director/ Chief Executive Officer. RESPONSIBILITY AND ACCOUNTABILITY STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RISK MANAGEMENT COMMITTEE The Board has delegated the governance of risk management to the Risk Management Committee to assist the Board in ensuring sound and robust Risk Management Framework (“RMF”) to achieve the Group’s strategic objectives, safeguard shareholders’ investments and its assets. The Terms of Reference was established and endorsed by the Board to govern its responsibilities and activities. The RMC is chaired by the Group’s Managing Director/Chief Executive Officer and consists of Head of Companies of the Group and co-opted members from the management team of the Group. The RMC is assisted by the Risk, Integrity & Compliance Department, which is primarily responsible for the implementation of the RMF and operationalisation of risk management processes and practices within the Group. A Charter, which defines RICD’s responsibilities, scope and authority, has been established and endorsed by the Board. Review and recommend risk management policies and procedures for the approval or acknowledgement of the BGRC and Board 1 Act as Primary Champion of risk management at strategic and operational levels 2 Review the ongoing adequacy and effectiveness of the risk management process 3 Review and deliberate on identified risks, controls and risk mitigating strategies to ensure that these are adequately managed 4 Ensure that the BGRC and Board receive adequate and appropriate information for review and decision-making purposes 5 The RMC undertakes the following responsibilities:
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