BIMB Integrated Annual Report 2019

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 CEO and the Group Chief Financial Officer that the Group’s risk management and internal control systems are operating adequately and effectively, in all material aspects, 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 management and internal control are performing satisfactorily and are adequate to safeguard the shareholders’ investments, customers’ interest and the Group’s assets. The Group will continue to implement new measures to strengthen its internal control and risk management environment. BOARD RESPONSIBILITY The Board recognises that a sound system of internal control and risk management practices are essential in ensuring good corporate governance. Such a system is 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. As a Financial Holding Company (“ FHC ”), continuous enhancements are being made to the system of internal control in line with the Board’s commitment to 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. Pursuant to Paragraph 15.26(b) of the Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors (“Board”) is pleased to provide the following Risk Management and Internal Control Statement (the “Statement”) which outlines the nature and scope of risk management and internal controls of the Group during the financial year ended 31 December 2019. This Statement has been made in line with the Statement on Risk Management & Internal Control: Guidelines for Directors of Listed Issuers. INTRODUCTION 154 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance STATEMENT OF RISK MANAGEMENT AND INTERNAL CONTROL