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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
88
Statement on Risk Management
and Internal Control
1.
INTRODUCTION
The Board acknowledges the importance of maintaining a sound systemof internal controls to safeguard the interests of shareholders
and other stakeholders. The Board’s Statement on Risk Management and Internal Control is in compliance with Paragraph 15.26(b) of
the Bursa Malaysia Securities Berhad (“Bursa”) Main Market Listing Requirements (“Listing Requirements”), Principle B of Effective
Audit and Risk Management of Malaysian Code on Corporate Governance 2017 (“MCCG”) and the Statement on Risk Management and
Internal Control: Guidelines for Directors of Listed Issuers.
2.
RESPONSIBILITY
The Board recognises their responsibility for the Group’s system of internal control, which is designed to identify and manage the
principal risks facing the business in pursuit of its objectives, to review its adequacy and integrity. The Audit and Risk Committee
supports the Board inmonitoring the Group’s risk exposures, the design and operating effectiveness of the underlying riskmanagement
and internal control systems. The Management is accountable to the Board for monitoring the Group’s systemof internal control and for
providing assurance to the Board that it has done so.
The systemof internal control covers riskmanagement, financial, operational, administration, human resource, information technology
and compliance controls to safeguard shareholders’ investments and the Group’s assets. This system is designed to manage rather
than to eliminate the risk of failure to achieve business objectives and can only provide reasonable but not absolute assurance against
material misstatement or loss.
The Board is of the view that the system of internal control and risk management in place for the year under review, and up to the date
of approval of this Statement on Risk Management and Internal Control, is sound and sufficient to safeguard the Group’s assets, as well
as the shareholders’ investments, and the interest of other stakeholders. The Board has received assurance from the Managing Director
and the Financial Controller that the Group’s riskmanagement and internal control system is operating adequately and effectively, in all
material aspects, based on the Group’s risk management and internal control system.
3.
INTERNAL CONTROL
The key processes that the Board has established in reviewing the adequacy and integrity of the system of internal control and risk
management systems include the following:
3.1 Operational and follow-up audits are conducted throughout the financial year based on approved annual audit plan to provide
reasonable assurance that the systems of internal controls and its framework, and governance processes put in place by
Management continue to operate satisfactorily and effectively and to add value and improve the Group’s business operations.
3.2 A meeting of Heads of Divisions which is held by the ultimate holding company, Kumpulan Fima Berhad (“KFima”) and chaired
by Group Managing Director is held monthly to deliberate on the KFima Group’s financial performance, internal audit reports,
business development, legal/litigation, operational, and corporate issues. The Managing Director will update the Board of any
significant matters that require the Board’s immediate attention.
3.3 The Managing Director actively participates and involves in the day-to-day running of the major businesses and regular
discussions with the senior management.