Page 156 - Full Book_24.4.2021

STATEMENT ON RISK MANAGEMENT AND
INTERNAL CONTROL
INTRODUCTION
Pursuant to Paragraph
INTEGRATED ANNUAL REPORT 2020 Requirements of Bursa
15.26(b) of the Listing
Malaysia Securities
Berhad, the Board of
Directors (“Board”)
is pleased to provide
150
the following Risk
Management and Internal
BIMB HOLDINGS BERHAD 199701008362 (423858-X) “Statement”) which
Control Statement (the
outlines the nature and
scope of risk management
and internal controls of
the Group during the
financial year ended
31 December 2020.
This Statement has been made in line with the Statement on Risk Management &
Internal Control: Guidelines for Directors of Listed Issuers.
The Board is committed and acknowledges its responsibility to oversee the system
of risk management and internal controls within the Group, including reviewing
the adequacy, integrity and effectiveness to safeguard shareholders’ investments
and the Group’s assets.
The Board has received assurance from BHB’s Chief Executive Officer (“CEO”) and
control systems are operating adequately and effectively, in all material aspects,
the Group Chief Financial Officer that the Group’s risk management and internal
during the financial year under review and up to the date of this Statement.
Taking into consideration assurances from the Management and the input from
the relevant assurance providers, the Board is of the view that the systems of risk
safeguard the shareholders’ investments, customers’ interest and the Group’s assets.
The Group will continue to implement new measures to strengthen its internal
management and internal control are performing satisfactorily and are adequate to
controls and risk management environment.
BOARD RESPONSIBILITY
The Board recognises that a sound system of internal controls and risk management
practices are essential in ensuring good corporate governance. Such a system is
As a financial holding company (“FHC”), continuous enhancements are being
designed to manage an acceptable risk profile rather than eliminate the risk of failure
to achieve the Group’s business objectives; and can only provide reasonable (and not
absolute) assurance against material misstatement, fraud or loss.
made to the system of internal controls in line with the Board’s commitment to
continuously improve the Group’s governance, risk management and internal
control framework and control culture. The environment for the proper control of
the Group’s business operations is also in line with Bank Negara Malaysia’s (“BNM”)
regulatory framework.
following committees:
•
Board Audit & Examination Committee (“BAEC”)
At BHB level, the internal control oversight responsibilities are carried out by the
The main responsibility of the BAEC is to assist the Board in assessing the
effectiveness of the Company’s system internal controls and overseeing the
internal control of the accounting system. This is to ensure that appropriate
methods and procedures are in place to attain the level of assurance required
by the Board. The BAEC reviews the quarterly reports relating to regulatory
developments, compliance and operational deficiencies identified within the
Company. The minutes of the BAEC are circulated to the Board for information.
The Terms of Reference is available on the Company’s website www.bimbholdings.
com.
• Board Risk Committee (“BRC”)
The BRC is responsible for assisting the Board on risk management, overseeing
the Management’s activities in managing significant risk areas and ensuring
that the risk management framework is in place and functioning effectively.
At the Management level, the BRC is supported by the Group Risk Management
Committee (“GRMC”) to oversee the risk management at group level.
The minutes of the BRC are circulated to the Board for information.
The Terms of Reference is available on the Company’s website www.bimbholdings.
com.