| ANNUAL REPORT 2015
76
STATEMENT ON RISK MANAGEMENT
& INTERNAL CONTROL
The Board of Directors of Bonia Corporation Berhad (Board) is pleased to present its Statement on Risk Management & Internal
Control for the FY2015, which has been prepared pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements of
Bursa Malaysia Securities Berhad (MMLR) and as guided by the Statement on Risk Management & Internal Control: Guidelines for
Directors of Listed Issuers (SRMIC Guidelines).
This statement outlines the nature and state of risk management and internal controls of the Group (comprising the Company and
its subsidiaries) during the FY2015. The associated companies of the Group have not been dealt with as part of the Group for the
purposes of applying these guidelines.
BOARD RESPONSIBILITIES AND ASSURANCE
Cognizant of the importance of the Group’s riskmanagement and internal control system to safeguard the shareholders’investment
and the Group’s assets, the Board strives to apply a risk-sensitive approach in identifying, evaluating and managing significant risks
that may affect the Group’s businesses. The Group’s internal control system encompasses all types of control including those of a
financial, operational, environmental and compliance nature, and it is closely monitored and adjusted to be consistent with the risk
appetite and tolerance levels set by the Board.
The management assists the Board in embedding risk management and internal control system in all aspects of the Group’s
activities. They play a key role in ensuring the sanctioned practices, processes and procedures to address current and emerging
risks are appropriately implemented throughout the Group, and to promptly report any significant deficiencies and weaknesses of
the control environment to alleviate and manage such risks.
In view of the limitations that are inherent in any systems of risk management and internal control, the Group’s system of risk
management and internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives,
and can only provide reasonable but not absolute assurance against material misstatement or loss.
For the FY2015, the Board has received assurance from its Group Chief Executive Officer and Group Finance Director where, to the
best of their knowledge, the Group’s risk management and internal control systems are operating adequately and effectively in all
material aspects, based on the risk management model adopted by the Group.
The Board confirms that there is a continuous process in place to identify, evaluate and manage the significant risks that may affect
the achievement of business objectives. The process which has been instituted throughout the Group is updated and reviewed
from time to time to suit the changes in the business environment and this ongoing process has been in place for the whole
FY2015 and up to the date of issuance of the Company’s Annual Report 2015.
INTERNAL CONTROL PROCESSES AND RISK MANAGEMENT
The key elements of the Group’s and risk management system and internal control processes are described below:-
•
There are proper documentations to define the responsibilities and functions of the Board and each of its committees.
•
Internal policies and procedures are in place, which are updated as and when necessary.
•
There is an organisation structure with clearly defined lines of responsibility, limits of authority and accountability aligned to
business and operations requirements which support the maintenance of a strong control environment.
•
There is a clearly defined delegation of responsibilities to the management of operating units who ensure that appropriate
risk management and control procedures are in place. The Group identifies the key risks by line of business and key functional
activities.
•
There is a clearly defined framework for investment appraisal covering the acquisition or disposal of any business, application
of capital expenditure and approval on borrowing, with post implementation reviews be conducted and reported.
•
The actual performances would be reviewed against the budgeted results on a quarterly basis allowing timely response and
corrective action to be taken to mitigate risks.
•
Comprehensive management accounts and reports are prepared monthly for effective monitoring and decision-making.
•
Regular scheduled management meetings are held and attended by all Executive Directors and senior management to
discuss and report on operational performance, business strategies, key operating statistics, legal and regulatory matters of
each business unit where plans and targets are established for business planning and budgeting process.
