• Regular divisional management committee meetings at Business Units are held to review the operational and key performance indicators against the approved budget; • Utilisation of contract tendering and evaluation process for large projects; and • Weekly report on Group’s cash position is monitored by Group Treasury. Periodic site visits to operating units are undertaken by the members of the divisional management committee and/or the members of the Board whenever deemed appropriate. The Group’s system of risk management and internal control applies principally to Wasco Berhad (formerly known as Wah Seong Corporation Berhad) and its subsidiaries. Associate companies and joint ventures have been excluded because the Group does not have full management control and/or majority Board representation. This statement is duly approved by the Board via a directors’ circular resolution dated 16 April 2024. RISK MANAGEMENT FRAMEWORK The RMC principally develops, executes and maintains the risk management system to ensure that the Group’s corporate objectives and strategies are achieved within the acceptable risk appetite of the Group. Its reviews cover responses to significant risks identified including non-compliance with applicable laws, rules, regulations and guidelines, changes to internal controls and management information systems, and output from monitoring processes as well as continual review process of identified risks and effectiveness of mitigation strategies and controls. Risk Management Process Communication and Consultation Review and Monitoring Step 1 Establish the context � Key objective for risk management � Risk Appetite Step 2 Risk Identification � Identify the risks � Risk Categories Step 3 Risk Assessment � Gross Risk Assessment � Net Risk Assessment Step 4 Risk Evaluation � Evaluate risk � Determine acceptability Step 5 Risk Treatment � Accept � Avoid � Identify likelihood, Impact and Risk Matrix � Transfer � Reduce (likelihood and/or Impact) REVIEW OF THIS STATEMENT As required by Paragraph 15.23, Chapter 15 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the external auditors have reviewed this Statement on Risk Management and Internal Control. Their limited assurance review was performed in accordance with Audit and Assurance Practice Guides (“AAPG”) 3 issued by the Malaysian Institute of Accountants. AAPG 3 does not require the external auditors to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Group. Statement on Risk Management and Internal Control Integrated Annual Report 2023 144
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