A N N U A L R E P O R T 2 0 1 6
46
CORPORATE
GOVERNANCE
Guideline
Code and/or Guide Description Company¡¯s Compliance or Explanation
Risk Management and Internal Controls
11.1
11.2
What is the Board¡¯s role in relation
to risk management?
The Board is responsible for the governance of risk and sets the direction for the Group
in the way risks are managed in the Group¡¯s businesses, and oversees the Management in
the design, implementation and monitoring of the risk management and internal control
system.
The Board reviews the adequacy and effectiveness of the Company¡¯s risk management
and internal control systems, including financial, operational, compliance and information
technology controls, at least annually.
11.3
(a) In relation to the major risks
faced by the Company,
i n c l u d i n g
f i n a n c i a l ,
operational, compliance,
information technology and
sustainability, please state
the bases for the Board¡¯s
view on the adequacy and
effectiveness of the Company¡¯s
internal controls and risk
management systems.
The Company has a Risk Management Committee headed by the Company¡¯s Deputy Chief
Executive Officer, Ms Chow Hui Shien and comprises management staff as its members.
The Risk Management Committee reviews and improves the Company¡¯s business at the
operational level by taking into account risk management perspectives. The Company
seeks to identify areas of significant business risks as well as appropriate measures to
control and mitigate these risks, where applicable. The Risk Management Committee
reviews all significant control policies and procedures and highlights any significant matters
to the AC.
The Board, with the concurrence of the AC, is of the view that the Company¡¯s internal
controls (including financial, operational, compliance and information technology controls)
and risk management systems were adequate and effective for FY2016.
The bases for the Board¡¯s view are as follows:
(i)
Assurance has been received from the CEO and Group Financial Controller (refer to
Guideline 11.3(b) below);
(ii) Both the external and internal audits have been carried out by the external auditors
(¡°
EA
¡±) and the internal auditors (¡°
IA
¡±) respectively and significant matters highlighted
to the AC and key management personnel were appropriately addressed;
