DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
46
Statement on Risk Management
and Internal Control
INTRODUCTION
The Malaysian Code on Corporate Governance (“Code”) sets out the principle that the Board of Directors
(“Board”) of a listed company should establish a sound risk management framework and internal control system
to safeguard shareholders’ investment and assets of the Group.
The Statement on Risk Management and Internal Control by the Board of Directors (“Board”) on the Group
is made pursuant to paragraph 15.26(b) of the Listing Requirement of Bursa Malaysia Securities Berhad and
in accordance with the Principles and Recommendations relating to risk management and internal control
provided in the Code.
BOARD RESPONSIBILITY
The Board acknowledges its responsibility for the Group’s risk management and internal controls and has
delegated the implementation of the risk management framework and internal controls system to the
Management. The Risk Management Committee (“RMC”) and Audit Committee (“AC”) of the Board were
tasked by the Board with the responsibility to ensure the establishment of appropriate framework and controls
as well as reviewing the adequacy and integrity of these systems in particular the financial, organisational,
environmental, operational and compliance aspects of the Group throughout the financial year.
The Management reports to the RMC on the risk areas faced by the Group. On quarterly basis, the Group
Internal Audit (“GIA”) reports the findings identified from the internal audit reviews as well as the actions taken
by the Management to address on those audit findings to the AC. Minutes of the meetings of the RMC and AC
were presented to the Board.
The Board is fully committed to ensure the existence of an effective risk management framework and internal
controls system within the Group, and continuously reviews and evaluates the adequacy and effectiveness
of the framework and system. However, the Board recognised that such systems are designed to manage
and reduce rather than to eliminate the risks identified to acceptable levels. Therefore, the internal controls
implemented can only provide reasonable and not absolute assurance against the occurrence of any material
misstatement, loss or fraud.
RISK MANAGEMENT FRAMEWORK
The Risk Management Committee (“RMC”) is charged with the responsibility to ensure the implementation of a
proper and appropriate system to manage the principle risks identified by the Management. The Group has in
place a Risk Management Framework to promote effective risk management and to enhance the corporate
governance assurance process. The framework provides an integrated risk management structure with the
establishment of the respective risk workgroups to ensure major areas of risks are controlled and coordinated.
This involves the process of identifying, assessing, responding, monitoring and reporting of risks and controls.
This risk management process is applied to all levels of activity in the Group, with the objective of establishing
accountability and ensuring mitigation at the source of the risk.
