BOARD RESPONSIBILITY
The Board acknowledges its responsibility for maintaining a sound system of internal control to safeguard
shareholders’ investments and the Company’s assets and for reviewing the adequacy and integrity of the system;
including for Associates and Joint Operation.
The Group’s system of internal control covers risk
management and financial, operational and compliance
controls. Notwithstanding these, due to the limitations
that are inherent in any system of internal control, the
Group’s internal control system 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.
Except for insurable risks where insurance covers are
purchased, other significant risks faced by the Group
are reported to Board, and managed by the respective
Boards within the Group. The internal control system
of the Group is supported by an appropriate
organisation structure with clear reporting lines,
defined lines of responsibilities and authorities from
respective operating units up to the Board level.
RISK MANAGEMENT
Risk management is regarded by the Board as an
important aspect of the Group’s operations with the
objective of maintaining a sound internal control
system and to ensure proper management of the risks
that may impede the achievement of the Group’s goals
and objectives. The Group has established the
appropriate risk management infrastructure to ensure
that the Group’s assets are well-protected and
shareholders’ value enhanced. The risk management
process includes identifying principal business risks in
critical areas, assessing the likelihood and impact of
material exposures and determining its corresponding
risk mitigation and treatment measures. These ongoing
processes are co-ordinated by the Group Risk
Management of Boustead Holdings Berhad (the
Immediate Holding Company of Boustead Plantations
Berhad) in conjunction with the business heads within
the Group.
The Management is entrusted with the responsibility
of implementing and maintaining the enterprise risk
management framework to achieve the following
objectives:
• communicate the vision, role, direction and
priorities to all employees and key stakeholders;
• identify, assess, treat, report and monitor
significant risks in an effective manner;
• enable systematic risk review and reporting on
key risks, existing control measures and any
proposed action plans; and
• create a risk-aware culture and building the
necessary knowledge for risk management at
every level of Management.
statement on
risk management
and internal control
an n ual repo rt 2015
51
