STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL The Statement is made in pursuant to Paragraph 15.26 (b) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) where the Board of Directors are required to make a statement about the state of risk management and internal control of the listed issuer of a Group. BOARD’S RESPONSIBILITIES Yinson’s Board of Directors (“Board”) recognises the importance of maintaining a sound risk management process and internal control practices to safeguard stakeholders’ reputations, shareholders returns and the Group’s assets. The Board affirms its overall responsibility to establish and maintain a robust risk management and internal control system through reviewing its adequacy in identifying, assessing, evaluating, and responding to risks that could have detrimental impact to the Group from achieving its objective. In evaluating the adequacy of risk management and internal control across the Group, the Board is assisted by the BRSC to oversee and ensure that the updated ERM Framework is being implemented consistently and that there are adequate internal control processes and procedures to manage these risks across the Group. Although the Board does not have formal oversight over the risk management and control systems of Yinson’s joint ventures and associate companies, our interests are safeguarded through Board representations and/or monitoring controls we imposed within these companies. MANAGEMENT COMMITTEE RESPONSIBILITIES The MC is responsible to implement the policies and procedures established by the Board pertaining to risk and control processes. The responsibilities entail but are not limited to the following: • Formulate relevant risk policies, procedures, and frameworks to manage these risks in accordance with the Group’s risk appetite; • D esign, assist and implement the effective risk management and internal control system to ensure that standardised methodology is used throughout the Group; and • M onitor and ensure that remedial actions plans are taken to mitigate the likelihood and the impact of the risk from escalating further. ERM POLICY STATEMENT & FRAMEWORK Yinson’s ERM Policy Statement & Framework provides a standardised and systematic approach for the identification, evaluation, monitoring and reporting of key risks, controls and ensuring that there are adequate measures to implement, track and review the action plans. The Framework is aligned with the ISO 31000:2018, and is adopted across the operating companies within the Group. The importance of aligning the ERM Policy Statement & Framework is to manage existing and emerging risks to protect our key stakeholders’ and shareholders’ interests. RISK GOVERNANCE & OVERSIGHT The GRC Department is responsible to establish, coordinate and implement at Yinson’s ERM Policy Statement & Framework which was recently enhanced to ensure that our internal risk management processes are kept up-to-date and sufficiently robust to manage risks effectively. In addition, the GRC Department will monitor and report key risk issues to the MC and escalate to the BRSC on a quarterly basis. Yinson’s ERM Policy Statement & Framework identifies, evaluates, monitors and manages risks encountered by the Group. Our risk governance structure facilitates risk identification and escalation whilst providing assurance on the key risks and controls to the Board. It elaborates and assigns clear roles and responsibilities within each line of defence and facilitates the implementation of the updated ERM Policy Statement & Framework. The current governance structure that assumes the roles of risk and governance perspective is further shown and explained as below: 199 ANNUAL REPORT 2022 GOVERNANCE
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