tomypak holdings berhad annual report 2012 - Announcements ...

ANNUAL REPORT 2012 pg 34
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Statement on Risk Management
and Internal Control
Introduction
The Board is committed in maintaining a sound system of internal controls to safeguard shareholders’ investment
and the Group’s assets. In doing so, the Board acknowledges its responsibility to identify major risks faced by the
Group and ensure that relevant internal controls are in place in order to manage these risks within acceptable risk
profile to increase the likelihood that the Group’s policy and business objective to be achieved.
In view of the above, the Board is pleased to provide the following Statement on Risk Management and Internal
Control which outlines the nature and scope of internal controls of the Group during the year pursuant to Paragraph
15.26 (b) of the Listing Requirements of Bursa Securities.
Board of Directors’ Responsibilities
The Board understands fully its responsibility to maintain a sound system of risk management and internal controls
and ensure accurate information to be presented in the financial statements. Risk management and internal control
system are designed to manage rather than eliminate the risk of failure in achieving its business objectives.
In pursuing the business objectives, internal controls can only provide reasonable but not absolute assurance
against material misstatement, loss or fraud. As such, the Board recognises that risk management and internal
control system is an important part of managing risks in an effort to attain a balanced achievement of its business
objectives, and operational efficiency and effectiveness.
The Board has endeavoured to identify the relevant major risks faced by the Group on a regular basis in order to
monitor these risks so as to ensure that the Group achieves its business objectives. The process is regularly review
by the board and is guided by the statement on Risk Management and Internal Control: Guidelines for directors
of Listed issuers.
The Board has received assurance from the Managing Director and the Finance Manager that the Group’s risks
management and internal control system is operating adequately and effectively in all material aspect based on
the risk management and internal control system of the Group.
The Risk Management Framework
In reviewing the adequacy and effectiveness of risk management and internal control system, the Board has always
carried out necessary preliminary studies and evaluation on various projects which will be undertaken by the Group.
This entails proper delegation of duties and responsibilities from the Board to the Managing Director, Executive
Directors and Senior Management (“The Management”) in running the main operating functions of the Group within
the Group’s strategic business plans.
In this respect, the Management comprises Managers and Departmental Heads who are able to identify business
risks relevant to the Group and design the appropriate risk management and internal control system to manage
these risks.
The Board was also assisted by the Risk Management Committee in ensuring that there is an on-going and systematic
risk management process undertaken by the Management to identify access and evaluate principal risks.
The Risk Management Committee conducts periodic meetings to ensure that risk matters relevant to the Group are
identified and managed properly to mitigate those risks affecting the achievement of the Group’s business objective.
The Management has also adopted the “open discussion” approach in the day-to-day running of the Group. This
has enabled various major business risks being identified easily and dealt with in a prompt manner.
TOMYPAK HOLDINGS BERHAD