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ANNUAL REPORT 2016
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 FY2016, 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 FY2016. 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 risk management 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 strategic, operational, reporting and
compliance nature, and it is being 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 FY2016, the Board has received assurance from its Group Executive Chairman cum 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 and Internal Control Framework 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 FY2016 and up to the date of issuance of the Company’s
Annual Report FY2016.
