2012 Annual Report - Media Prima Berhad

Media Prima Berhad
Statement on
Risk Management and Internal Control
A. RESPONSIBILITY
The Board affirms its overall responsibility for the
Group’s system of risk management and internal
controls, and for reviewing the adequacy and integrity
of the systems to safeguard the shareholders’ interest
and the Group’s assets. It should however be noted
that such systems are only designed to manage
rather than totally eliminate the risk of failure to
achieve business objectives. Accordingly, these
systems can only provide reasonable but not absolute
assurance against material losses, fraud, misstatements
or breaches of laws or regulations.
Pursuant to Paragraph 15.26(b) of the
Main Listing Requirement of Bursa
Malaysia Securities Berhad, the Board
of Directors of listed companies is
required to include in its Company’s
Annual Report a ‘statement about the
state of its internal controls of the
listed issuer as a group’.
The Malaysian Code on Corporate
Governance 2012 under Principle 6
states that the Board should establish
a sound risk management framework
and internal controls system.
The Board is pleased to provide the following
statement that was prepared in accordance
with the revised guideline, called the
Statement on Risk Management and Internal
Control - Guidelines for Directors of Public Listed
Issuers which outline the nature and scope of risk
management and internal control of the Group during
the financial year under review.
The Board and Management acknowledges that a
sound internal controls system is a vital process
developed to ensure effective and efficient operation,
provide reliable and relevant reporting, and compliance
with the applicable laws and regulations.
The Group has in place a continuous, proactive and
systematic control structure and process for
identifying, evaluating and managing significant risks
pertinent to the achievement of the Group’s overall
corporate objectives. The control structure and
process which has been established throughout the
Group is updated and reviewed from time to time to
suit the changes in business environment.
B. CONTROL ENVIRONMENT AND
ACTIVITIES
The Board is committed to maintaining a strong
control structure and environment for the proper
conduct of the Group’s business operations. The
Group’s control environment comprises of the
following components which have been in place
throughout the financial year:
Risk Management Framework
• The Board has established a Risk Management
Framework to ensure that business, financial and
manpower risks are identified, assessed and
managed effectively. The risk management
process requires Management to comprehensively
identify and assess all types of risks in terms of
likelihood and magnitude of impact as well as to
evaluate the adequacy of mechanisms in place to
manage these risks.
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annual
report
2012