AwanBiru Technology Berhad - Annual Report 2021

Statement on Risk Management and Internal Control INTRODUCTION The Malaysian Code on Corporate Governance (“ MCCG ”) recommends that the Board of Directors (the “ Board ”) of the listed companies should maintain a sound risk management and internal control framework in order to safeguard shareholders’ investments and the Group’s and the Company’s assets. Paragraph 15.26(b) of the Bursa Securities Securities Berhad (“ Bursa Securities ”) Main Market Listing Requirements as well as Practices 10.1 and 10.2 of the MCCG also require the Board of the listed companies to include a statement on the state of their internal controls in their annual reports. In view of the above, the Board is pleased to present the following statement that has been prepared in accordance with the “Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers” (“ SORMIC ”) issued by Bursa Securities. RESPONSIBILITY The Board recognizes its responsibility in upholding an effective and adequate risk management and internal control system, which is a material part of good corporate governance. In line with that, the Board acknowledges its main responsibility in ensuring the principal and significant risks of the Group and the Company are identified and properly managed by the risk management and internal control system of the Group and the Company. The Board has also established an on-going process for identifying, evaluating, and managing significant risks faced by the Group and the Company and to regularly review this process. Management is assigned with the role of assisting the Board on the implementation of the Group’s policies and procedures on risk management and control by identifying and assessing the various risks that could affect the operation of the Group and the Company, and ensuring appropriate and suitable controls are taken to mitigate and control the risks. From time to time, the Board received assurance from the President/Group Chief Executive Officer (“ GCEO ”), Chief Operating Officer (“ COO ”) and Group Financial Controller (“ GFC ”) that the risk management and internal control system in place is operating in an adequate and effective manner, and that it is sufficient to safeguard the interest of the Group and the Company. The Board acknowledges that a sound risk management and internal control system provides reasonable but not absolute assurance, that the Group and the Company will not be hindered in achieving its business objectives and sustainable operations. COVID-19 Pandemic The Board firmly believes that risk management is critical to the Group’s continued business sustainability and the accretion of value creation. This is exemplified by the unforeseen events brought about by the debilitating COVID-19 pandemic which has forced the Group to heighten its risk management efforts as means to sustain its businesses amid a global economic distress. Given its unprecedented nature, the COVID-19 pandemic resulted in stark changes in the conduct of business and current work practices adopted by the Group such as working remotely from home and harnessing on technology to facilitate social distancing practices through virtual meetings. The Board is of the view that the Group’s risk management and internal control system is adequate and effective to safeguard the interests of stakeholders and the Group’s assets, despite the impediments brought about by the COVID-19 pandemic. Transparency | Awantec Annual Report 2021 115