BIMB Integrated Annual Report 2019

Performance Review The Board receives and reviews Management reports on the Group’s financial and operational performance, risk management as well as legal and regulatory matters on a quarterly basis. The report on financial performance highlights the key financial indicators, including ratios on profitability, capital adequacy and asset quality. The actual performance of BHB and its key operating subsidiaries are assessed against approved budgets and business plans, key financial indicators and industry benchmark. The assessment enables the Management to identify any significant deviations and gaps for remedial measures to be implemented where necessary. Whistle-Blowing Policy There is an established process for reporting anyone suspected to be abusing or circumventing processes and controls. All staff are accorded the opportunity to report via the whistle-blowing mechanism with the assurance that the report will be dealt with confidentially and that the reporter’s identity will be protected. Shariah Compliance Policy The policy is formulated to enable BHB to communicate its Shariah governance framework and strategies towards the effective and efficient Shariah governance throughout the Company in line with the Shariah rules and principles, provisions of the Islamic Financial Services Act 2013, BNM’s Shariah Governance Framework for Islamic Financial and the relevant resolutions of the Shariah Advisory Council of BNM (“ SAC ”) as well as SSC of Bank Islam’s decision regarding BHB. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS AAPG 3 (Revised 2018) does not require the external auditors to consider whether the Directors’ Statement on Risk Management and Internal Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk management and internal control system including the assessment and opinion by the Board of Directors and Management thereon. The auditors are also not required to consider whether the processes described to deal with material internal control aspects of any significant problems disclosed in the Annual Report will, in fact, remedy the problems. This statement is made in accordance with the resolution of the Board dated 30 April 2020. The external auditors have reviewed this Statement on Risk Management and Internal Control pursuant to the scope set out in the Audit and Assurance Practice Guide 3 (“ AAPG 3 ”) (Revised 2018), Guidance for Auditors on Engagements to Annual Report on the Statement on Risk Management and Internal Control included in the Annual Report issued by the Malaysian Institute of Accountants (“ MIA ”) for inclusion in the Annual Report of the Group for the financial year ended 31 December 2019. Based on the review conducted, the external auditors have reported to the Board that nothing has come to their attention that would cause them to believe that this Statement: (a) has not been prepared in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, or (b) is factually inaccurate. PUAN NORAINI CHE DAN Chairman Board Audit & Examination Committee ENCIK MOHD TARMIDZI AHMAD NORDIN Chairman Board Risk Committee 159 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary