STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL KEY ELEMENTS OF INTERNAL CONTROL The Board is committed to establish and maintain internal control systems in order to respond appropriately to risks that may hinder the Group from achieving its goals and objectives. The internal control systems are embedded within the Group’s operating activities to provide reasonable assurance that the likelihood of significant adverse impact on business objectives is at an acceptable level to the Group. 1. Institutionalisation of the ERM Policy and Framework to support the overall achievement of the Group’s vision and strategic goals, as well as to safeguard the reputation, resources and assets of the Group. Risk Assessment 2. Institutionalisation of RC at Board and management levels to enable systematic risk review and reporting on key risks, existing control measures and any proposed action plan. 1. Clear organisation structure with defined reporting lines of responsibility and accountability to support the maintenance of a strong control environment and control activities. 2. Introduction of new key roles and functions to oversee and deliberate the management’s decisions and activities. 3. Clearly defined Senior Management’s Key Performance Indicator to monitor and measure their effectiveness and performance. 4. Defined level of authorities and lines of responsibilities from operating units up to the Board level to ensure accountabilities for risk management and control activities. 5. Revision of the Limit of Authority (LoA) to enhance the decision-making aligns with the organisation’s current operational needs, strategic objectives, and governance standards. 6. Clarity in new and additional allocation approving process guided the addition of a new clause under the revised LoA. Control Environment 7. Clearly documented policies and procedures for day-to-day operations. Regular reviews are performed to ensure that the Standard Operating Procedure remains current and relevant. 8. Code of Ethics for the Board and all employees to ensure high standards of conduct and ethical values in all business practices. 9. Established Gift, Entertainment, Hospitality and Other Similar Benefits Policy and Integrity Pact to promote transparency in all aspects of business dealing. 10. The Board is supported by a qualified and competent Company Secretary. The Company Secretary plays an advisory role to the Board particularly on issues relating to compliance with MMLR, Companies Act 2016 and other relevant laws and regulations. 11. Establishment of a standard main agreement for all contracts in tender documents to protect BPlant’s interest. Boustead Plantations Berhad 120
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