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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 251

STATEMENT ON

RISK MANAGEMENT AND

INTERNAL CONTROL

RESPONSIBILITY AND ACCOUNTABILITY

The Board is committed in maintaining and continuously improving the MSM Group
and its subsidiaries system of risk management as well as internal controls and is
pleased to promote this through the following statement for the group during the
year under review.
This statement is The Board acknowledges the importance of a sound risk management system
and internal control practices for good corporate governance with the objective
made pursuant to: of safeguarding shareholders’ investments and the Group’s assets. The Board
affirms its overall responsibility for the Group and has undertaken a review on
Rule 15.26(b) of the adequacy and effectiveness of those systems and compliance with relevant
laws and regulations. In view of the inherent limitations in any system of internal
Bursa Malaysia controls, this system is designed to manage the risk to as low as reasonably
Securities Berhad practicable in achieving the corporate objectives. The system can only provide
with reasonableness, nevertheless it is short of absolute assurance against
Main Market Listing material misstatement or losses or the occurrence of unforeseeable
circumstances.
Requirements,
Malaysian Code Audit, Governance and Risk Committee
on Corporate Audit, Governance and Risk Committee (AGRC) at Board level supports the
Board in its risk management and internal control responsibilities. AGRC is tasked
Governance 2021 with:
and in accordance i. overseeing risk management and governance aspects of the Group; and

with the Statement ii. assessing the risks and control environment and overseeing financial reporting,
including the external and internal audit.
on Risk Management

and Internal Control: RISK MANAGEMENT
Guidelines for Risk Management is regarded by the Board to be an integral part of the Group’s
organisational processes, with the objective of maintaining sound system and
Directors of Listed ensuring its continuing adequacy and integrity. Risk Management is firmly embedded
Issuers. in the Group’s Risk Management Framework.

The Management’s key role is to identify significant risks, evaluate the risk profile
and drive risk mitigation strategies on a regular basis. The management team is also
responsible for risk management within their functional areas and to ensure that risk
management is embedded in their day-to-day business processes.