STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL In line with paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, and guided by the Statement on Risk Management & Internal Control Guidelines for Directors of Listed Issuers, the Board is committed to preserve and uphold a sound system of risk management and internal controls as well as good corporate governance throughout Tropicana Corporation Berhad (“TCB” or “Company”) and its subsidiaries (“the Group”). RESPONSIBILITIES OF THE BOARD The Board of Directors (the “Board”) of Tropicana Corporation Berhad (the “Group”) is highly committed to maintain a sound system of risk management and internal control in the Group. The Risk Management Framework includes the ongoing process of identifying, evaluating, responding, managing and monitoring significant risks that may affect the Group’s business performance, ensuring that optimum operational function is maintained at an acceptable risk appetite while striving to achieve Tropicana’s overall strategic objectives. The Board endorses the Group’s risk management framework; delegating primary responsibilities for the implementation of the framework across the Group’s business operations to the Risk Management and Sustainability Committee, the Risk Management Department and Business/Operations Head. The Board acknowledges and approves the ongoing process of identifying, evaluating and managing all significant risks faced by the Group that has been in place for the year and up to the date of approval of this Statement for inclusion in Annual Report. In view of the inherent limitations in any system of the risk management and internal control processes, the said system, therefore, is put in place to provide reasonable, but not absolute assurance, against material misstatements, financial losses, defalcations or fraud. During FY 2022, the Risk Management and Sustainability Committee (“RMSC”) reviewed, appraised and assessed the controls and action in place to mitigate and manage the overall Group’s risk exposure, as well as raised issues of concerns and recommended mitigating actions. The RMSC had presented a summary of its deliberations and decisions to the Board on a quarterly basis. During the financial year, the adequacy and effectiveness of the system of internal controls was reviewed by the Audit Committee in relation to the internal audits conducted by Group Internal Audit, as well as control issues reported by the external auditors. The Audit Committee deliberated on the audit issues and the actions taken by Management, and a summary of these deliberations has been presented to the Board. KEY FEATURES OF THE RISK MANAGEMENT FRAMEWORK The Group’s systems of risk management and internal controls include several key features to safeguard assets, shareholder interests and business operations throughout the reporting year: Risk Management Framework The Group strives to inculcate an organisational culture of risk awareness and management across all business processes and strategic planning. The risk appetite has been set by the Board and expect management to operate and ensure the risk management framework is established to provide a strong foundation for proactive risk considerations to be applied throughout business processes and decision making. The Board affirms its endorsement of the Group’s risk management framework and continuously oversees the management of organisational risks and opportunities with the support of the RMSC through periodic reviews on the integrity of systems and controls that are in place to identify, analyse, evaluate, manage and monitor significant financial and non-financial risks which is aligned with ISO 31000:2018 Risk Management. Objectives of the Risk Management Framework include, but are not exclusive to: • Provision for decision makers to make informed business decisions within the tolerable risk threshold while leveraging on potential opportunities; • Guidance on a structured approach to identifying, classifying, reporting, managing and monitoring risks; • Clear reporting structure on a timely manner; and • Systematic review on key risks to evaluate the effectiveness of internal controls and any proposed action plans for further mitigation. Primary responsibility and accountability on ensuring the risk management framework and internal controls are applied across the Group is overseen by the Group Managing Director and supported by the Group Executive Director, as well as the rest of the members in the RMSC. The Board receives reasonable assurance on the effectiveness of the Group’s risk management practices and internal control systems as reported and advised by the RMSC. 132 ANNUAL REPORT 2022
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