GOVERNANCE Sect ion 04 Annual Report 2022 127 • Third Party Dealing Policy The Group has established a policy to ensure that all transactions entered by each Group Company with third parties are guided by principles of integrity, honesty and ethics. A risk assessment is conducted for any business proposal entered into by Ranhill Group. • Business Continuity Management The Group provides guidelines in managing and minimizing business interruption due to any disaster. For major disasters, each operating unit has its own Emergency Response Plan. • Corporate Disclosure Policy The Groups has a policy that provides guidance and structure in disseminating corporate information to, and dealing with shareholders, stakeholders, media representatives, analysts and the investing public. Also, it provides guidance to the Board, management and employees on the Company’s disclosure requirements and practices. • Regulatory Compliance Monitoring The Group’s state of compliance to key regulatory requirements is monitored quarterly, through a compliance checklist to manage potential breaches and to detect incidents which may have a material effect on the annual Statement on Risk Management and Internal Control. • Strong Anti-Corruption Stance The Group has always maintained a zero-tolerance approach towards any form of bribery, favouritism and / or misconduct in any business dealing involving the Group, its subsidiaries or suppliers and business partners. Our CCBE defines what constitutes as corrupt acts. The CCBE states that both the beneficiary and the giver of the corrupt act will be censured by the company and if necessary, reported to the relevant authorities for further enforcement action. Awareness on anti-corruption is cascaded to all staff during their induction sessions and also periodically through refresher sessions. Various company channels such as email, townhalls, posters and others are used to reinforce the anti-corruption stance among staff and stakeholders. • Effective Oversight of Associate Companies The Group’s interests are served through representations on the Boards of the respective associated companies, receipts and review of respective management accounts, and enquiries thereon. Such representation also provides the Board with information for timely decision making on continuity of the Group’s investments based on the performance of the associated companies. Regular reporting on financial and operational performance of the associate companies is presented in the Office of Chairman meetings (“OCM”). INTERNAL AUDIT The Group’s internal audit function is performed by GCAD which is an integral part of the Group’s internal control systems, reports directly to the Audit Committee (“AC”). GCAD’s primary role is to provide independent, reasonable and objective assurance in addition to consulting services designed to add value and improve efficiency of the Group’s operations. In assisting the Group to achieve its objectives, GCAD employs a systematic and discipline approach to evaluate and improve the effectiveness of risk management, internal controls and governance processes. A risk-based audit plan is developed by GCAD which sets out the audit engagements within the Group for the year, and is reviewed and approved by the AC. GCAD conducts risk-based internal audit reviews at both operational and corporate levels. Plans and tools for corrective action and improvements are identified with operations management to address any issues or deficiencies identified. GCAD follows up on the implementation of its recommendations and reports the outcome to the AC. Statement on R i sk Management and Internal Control
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