Statement On Risk Management And Internal Control
Introduction
This Statement on Risk Management and Internal Control by the Board of Directors
is made pursuant to Bursa Malaysia Listing Requirement with regard to the Group’s
compliance with the principles and best practices for internal control as provided in the
Malaysian Code of Corporate Governance (“the Code”).
The Board of Naim believes in good corporate governance and managing the affairs of
the Group in accordance with the Code. In addition, the Board believes that it is very
much the voluntary good behaviour and credibility of the Board which will create a good
governance culture for the entire organization and its business partners.
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The Board acknowledges its responsibilities for maintaining a sound system of risk
management and internal control to safeguard shareholders’ investment and the
Group’s assets as well as reviewing the adequacy and integrity of the system. In
discharge of these responsibilities, the Board has put in place a process at all levels of
the organization to provide reasonable assurance that the Group’s business objectives
will be achieved. The system covers inter alia ¿nancial, operational and compliance
system controls, as well as risk management. Due to the limitations that are inherent in
any system of risk management and internal control, it is designed to manage, rather
than eliminate, the risk of failure to achieve corporate objectives. Accordingly, it can
only provide reasonable but not absolute assurance against material misstatement or
loss.
Risk Management Framework
The Board acknowledges that the Group’s activities involve some degree of risks and is
committed to ensure that it has an effective risk management framework which allows
the Group to identify, evaluate and manage risks that affect the achievement of the
Group’s business objectives and strategies within a de¿ned risk tolerance in a timely
and effective manner.
The Risk Management Committee is chaired by an Independent Non-Executive
Director, and a majority of its members are Independent Non-Executive Directors.
The Committee is supported by an independent Group Risk Management Department
(GRMD) to assist in the coordination of the Group’s risk management activities and in
establishing and communicating of the framework, policies, processes and reporting
requirements to the business units, divisions and departments; to coordinate Group-
wide review of risks and risks pro¿le and to promote risk awareness within the Group.
Yam Anak Ladi
Grateful
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Sim Suh Ching
Proud to
be part of NAIM
Mislia Bt Salihi
Proud
to be part of NAIM
Michael Ngui
Proud to
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Dil Bahadur Thapa
Jhedi Magar
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Naim in providing us a
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Mankaji Lama
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forward to better
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104
Naim Holdings Berhad
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