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GOVERNANCE
Bursa Malaysia
•
Annual Report 2014
74
8. Staff Competency
Hiring and termination guidelines are in place while training and development
programmes are conducted to ensure that staff are kept up to date with
the necessary competencies to carry out their respective duties towards
achieving the Group’s objectives.
9. Conduct of Staff
a.
Bursa Malaysia’s corporate culture is founded on the following core
values which are continuously inculcated in staff in their service to
Bursa Malaysia and its stakeholders:
B
– uilding Relationships
U
– nited to Achieve
R
– esponsibility
S
– implicity
A
– gility
b. A Code of Ethics is established for all employees, which defines the
ethical standards and work conduct required at Bursa Malaysia.
c.
Bursa Malaysia has a Whistleblower Policy and Procedures (WPP) to
provide an avenue for staff or any external party to report any breach or
suspected breach of any law or regulation, including business principles
and the Group’s policies and guidelines, in a safe and confidential
manner. An employee who makes a report of improper conduct in good
faith shall not be subject to unfair dismissal, victimisation, demotion,
suspension, intimidation or harassment, discrimination, any action
causing injury, loss or damage or any other retaliatory actions by
the Company. The AC has the overall responsibility in overseeing the
implementation of the WPP for Bursa Malaysia Group.
d. 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using unpublished price sensitive information obtained during the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.
e.
A Corporate Fraud Policy is established to aid in the detection and
prevention of fraud and to promote consistent organisational behaviour
and practices.
f.
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.
g. Management and employees at Grade E6 and above are required to
annually declare and provide an update on assets acquired or disposed
during the year.
STATEMENT ON INTERNAL CONTROL AND RISK MANAGEMENT
h. 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
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 by Management to review the coverage based on the current
fixed asset register and the respective net book values and “replacement
values”, 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 to assess the adequacy of the intended
coverage. There is also a yearly exercise to ensure adequacy and renewal of
the Group’s professional indemnity insurance coverage.
REVIEW OF THIS STATEMENT
Pursuant to paragraph 15.23 of MMLR, the External Auditors have reviewed this
Statement for inclusion in the 2014 Annual Report, and reported to the Board that
nothing has come to their attention that causes them to believe that the Statement
is not prepared, in all material aspects, in accordance with the disclosures
required by paragraphs 41 and 42 of the Statement on Risk Management and
Internal Control Guidelines for Directors of Listed Issuers, nor is the Statement
factually inaccurate. This Statement was approved by the Board on 29 January
2015. GIA has reviewed this Statement and reported to the AC that, while it has
addressed certain 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 the Group’s assets, as well as
the shareholders’ investments, the interests of customers, regulators, employees
and other stakeholders.
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.