Corporate Governance Statement

The key matters reserved for the Board's approval include the annual business plan, the business continuity framework, acquisitions and disposals of companies within the Group, disposals of significant fixed assets, expenditures above a certain limit, Group business restructuring, dividend policy and new issues of securities.

Board Committees are entrusted with specific responsibilities to oversee the affairs of the Company, with authority to act on behalf of the Board in accordance with their respective Terms or Reference (TOR). At each Board Meeting, the minutes of the Board Committee meetings are presented to the Board for information. The Chairman of the relevant Board Committee will also report to the Board on the key issues deliberated by the Board Committee at its meeting.

The CEO is responsible for the day-to-day management of the business and operations of the Group for its regulatory and commercial functions. He is supported by the Management team, as set out on pages 25 to 27 of the Annual Report. The CEO provides the Board with a monthly status report which includes a detailed summary of the Group's operating drivers and financial performance for the period as well as updates on key strategic initiatives and significant operational issues.

As a measure to ensure the independence of the regulatory function, the CRO provides the Board with a separate status report on a regular basis, to inform the Board on actions taken by the Regulation Group and provide updates on regulatory initiatives. In March 2008, the Board also reviewed the Annual Regulatory Report 2007 before the report was submitted to SC.

In addition, the Board reviewed the findings of the 2007 Customer Satisfaction Survey conducted by an external research firm, Synovate. The survey determined the level of satisfaction among Bursa Malaysia's external stakeholders, covering areas such as quality of business process, overall image and value, and is designed to assist the Company's performance improvement.

c. Identifying principal risks and ensuring the implementation of appropriate systems to manage these risks

Through the Risk Management Committee (RMC), the Board oversees the Enterprise Risk Management (ERM) framework of the Group. The RMC advises the Audit Committee (AC) and the Board on areas of high risk faced by the Group and the adequacy of compliance and control throughout the organisation. The RMC reviews the risk management policies formulated by Management and makes relevant recommendations to the Board for approval. Further details on the RMC and the Company's ERM framework are set out on pages 69 to 71 of the Annual Report.