AwanBiru Technology Berhad - Annual Report 2021

Following from the internal audit report and the recommendations, the following policies were revised during the financial year: - • Board Charter; • Corporate Disclosure Policy and Procedures; • Directors’ Code of Conduct and Ethics; • Diversity Policy; • Remuneration Policy; • Whistleblowing Policy • Sustainability Policy • Audit Committee Terms of Reference (“ TOR ”); • Long Term Incentive Plan TOR; • Nomination Committee TOR; and • Remuneration Committee TOR. OTHER KEY ELEMENTS RELEVANT TO RISK MANAGEMENT AND INTERNAL CONTROL • Clearly defined TORs, authorities and responsibilities of the various committees which include the Audit Committee, Risk Management Committee, Nomination Committee, Remuneration Committee. • Well-defined organizational structure with clear lines for the segregation of duties, accountability, and the delegation of responsibilities to Senior Management and the respective division heads including appropriate authority limits to ensure accountability and approval responsibility. • Budgets are prepared annually for the Business/Operating units and approved by the Board. The budgets include operational and financial requirements and performance monitored on a quarterly basis. • Regular Board meetings are held and Board papers are distributed in advance to all Board Members who are entitled to receive and access all necessary and relevant information. Decisions of the Board are only made after the required information is made available and deliberated on by the Board. The Board maintains complete and effective control over the strategies and direction of the Group and the Company. • Review by the Audit Committee of risk management internal control issues identified by the external and internal auditors and action taken by the Management in respect of the findings arising therefrom. The internal audit function reports directly to the Audit Committee. Such findings are communicated to the Management and the Audit Committee with recommendations for improvements and follow up to confirm all agreed recommendations are implemented. The internal audit plan is structured on a risk-based approach and is reviewed and approved by the Audit Committee. • The Risk Management Committee was established by the Board to assist the Board in overseeing the overall management of the principal areas of risk of the Group and the Company including capital management and operational process. • Review all proposals for material capital and investment opportunities by the Audit Committee and approval of the same by the Board prior to committing the expenses. Statement on Risk Management and Internal Control Awantec | Transparency Annual Report 2021 118