Annual Report 2016
49
BOARD’S RESPONSIBILITIES
The Board of Directors (“The Board”) acknowledges their responsibility for maintaining a sound system of internal control
comprising financial and operational controls, compliance and risk management to safeguard shareholders' investments
and the Group's assets.
There is an on-going review process by the Board to ensure the adequacy and integrity of the risk management and internal
control system in accordance with the Statement on Risk Management and Internal Control: Guidelines for Directors of
Listed Issuers. However, the Board recognises that the review of the Group's system of risk management and internal
controls is a concerted and continuous process, designed to manage rather than eliminate the risk of failure to achieve
business objectives. As such, internal controls can only provide a reasonable and not absolute assurance against material
misstatement or loss.
The Board has received assurance from the Executive Committee that the Group’s risk management and internal control
system is adequate and operates effectively, in all material aspects. The Executive Committee consists of the Group
Managing Director and the head of business units.
MANAGEMENT’S RESPONSIBILITES
Management is accountable to the Board for risk management and internal control and has implemented processes to
identify, evaluate, monitor and report risks and to design and implement relevant controls in response to the risks. In this
regard Risk Management Committee (“RMC”) has been established at the Group. The terms of reference of the RMC,
among others, are:-
•
Create a high-level risk strategy policy aligned with the Group’s strategic business objectives;
•
Identify and communicate to the Board, the critical risks, whether present or potential, the Group faces, their changes
and the Management’s action plans to manage the risks;
•
Perform risk oversight and review risk profiles of the Group and monitor organisational performance; and
•
Provide guidance to the business units on the Group’s and business unit’s risk appetite and capacity.
The RMC of QL Resources Berhad comprises Executive Committee, Head of Financial Reporting and Investor Relations
and Group Risk Management Manager and is chaired by the Group Managing Director.
RISK MANAGEMENT
The Group adopts an Enterprise Risk Management (“ERM”) framework, in accordance with the Malaysian Code on
Corporate Governance 2012, which projects the Group's desire to identify, evaluate and manage significant business risks.
The Group’s ERM framework aims to facilitate the execution of strategic business action to achieve the Group’s vision of
being the preferred global agro based enterprise, by implementing mitigating controls or translating the principal risks of
the business into upside opportunities.
The Board has formalised the ERM framework into the Group's Risk Management Policies and Procedures. The ERM
framework enhances risk oversight, facilitates in continuously identifying significant risks of the Group and ensuring instituted
controls are consistently applied by Management to maintain an acceptable level of exposure to risks. The ERM framework
was developed based on established enterprise risk management principles.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
