Bursa Malaysia • Annual Report 2013
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c.
A Securities Transaction Policy is established to govern the securities
transactions of the Group’s staff. The policy prohibits employees from
using unpublished price sensitive information obtained during the
course of their work for personal gain or for the gain of other persons.
Employees (including principal officers) are also not allowed to trade
in the securities of Bursa Malaysia during the closed period, which is
30 calendar days preceding the announcement of Bursa Malaysia's
quarterly and annual financial results.
d. A Corporate Fraud Policy is established to aid in the detection and
prevention of fraud and to promote consistent organisational behaviour
and practices.
e.
A Confidentiality Policy is established for the management, control
and protection of confidential information used by the Group to avoid
leakage and improper use of such information.
f.
Management and employees at Grade E6 and above are required to
declare and provide an update annually on assets acquired or disposal
during the year.
g. Segregation of duties is practised whereby conflicting tasks are
assigned to different members of staff to reduce the scope for error
and fraud.
10. Insurance
a.
Sufficient insurance coverage and physical safeguards on major
assets are in place to ensure the Group’s assets are adequately
covered against any mishap that could result in material loss. A yearly
policy renewal exercise is undertaken in which Management reviews
the coverage based on the current fixed asset inventory and the
respective net book values and “replacement value”, i.e. the prevailing
market price for the same or similar item, where applicable. The
underwriter also assists by conducting a risk assessment, which helps
Bursa Malaysia in assessing the adequacy of the intended coverage.
There is also a yearly renewal exercise to ensure adequacy of the
Group’s professional indemnity insurance coverage.
REVIEW OF THIS STATEMENT
Pursuant to paragraph 15.23 of the Main Market Listing Requirements, the
External Auditors have reviewed this Statement for inclusion in the 2013 Annual
Report, and reported to the Board that nothing has come to their attention that
causes them to believe that the Statement is inconsistent with their understanding
of the process adopted by the Board in reviewing the adequacy and integrity
of the system of internal control and risk management. This statement was
approved by the Board on 29 January 2014. GIA has reviewed this Statement
and reported to the AC that, while it has addressed individual lapses in internal
control during the course of its internal audit assignments for the year, it has not
identified any circumstances which suggest any fundamental deficiencies in the
Group’s internal control and risk management system.
CONCLUSION
The Board is of the view that the system of internal control and risk management
is in place for the year under review, and up to the date of approval of this
Statement, is sound and sufficient to safeguard shareholders’ investments, the
interests of customers, regulators, employees and other stakeholders, as well as
the Group’s assets.
The Board has received assurance from the CEO and CFO that the company’s
internal control and risk management system is operating adequately and
effectively, in all material aspects, based on the framework adopted by the Group.
Statement on Internal Control and Risk Management
Governance
