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STATEMENT ON
RISK MANAGEMENT
AND INTERNAL CONTROL
1. INTRODUCTION
The Board of Ekovest Berhad (“the Board”) is pleased to present the following statement on Risk Management and
Internal Control for the financial year ended 30 June 2014. This Statement is prepared pursuant to paragraph 15.26(b)
of the Main Market Listing Requirements and guided by the “Statement on Risk Management and Internal
Control – Guidelines for Directors of Listed Issuers” (
“the Guidelines”
) which was endorsed by the Bursa Securities.
2. BOARD'S RESPONSIBILITY
The Board understands the principal risks the Group is engaged in and acknowledges the importance of risk
management and systems of internal control for safeguarding the shareholders’ investment and Group’s assets.
Principally, the Guideline suggests the Board to:
• Embed risk management in all aspects of the Group’s activities, which also encompasses subsidiaries of the
Company; and
• Review risk management framework, processes, responsibilities and assessing whether the present policies and
systems provide reasonable assurance that risk is managed appropriately.
Collectively, the Board oversees and reviews the conduct of the Group’s business while Executive Directors and
management execute measures and controls to ensure that risks are effectively managed.
3. RISK MANAGEMENT
The Group has an on-going process for identifying, evaluating and managing significant risks facing the organization.
Functionally, all Executive Directors and senior management regularly identify and manage the business risks faced by
the Group in order to ensure that business operations are under control and corporate targets and objectives are
achieved. This function is embedded and carried out as part of the Group’s operating and business management
processes. External and relevant professionals would be drawn on to assist and provide advices to the management
team when necessary.
4. REVIEW MECHANISM
In order to ensure the objectivity of the review of the systems of internal control and risk management framework in the
Group, the Audit Committee is instituted by the Board to undertake this role. In conducting its review, the Audit
Committee is assisted by the internal auditors who report to the Audit Committee quarterly on the state of control of
the selected key functions. Additionally, the Audit Committee obtains feedback from the external auditors on the risk
and control issues highlighted by them in the course of their statutory audit.
Management further supplements the Audit Committee review on control and risk assessment when presenting their
quarterly financial performance and results to the Audit Committee. With the management consultation, the Audit
Committee reviews and analyses the interim financial results in corroboration with budget, management reports on
operations, its business development and the performance of its subsidiaries as well as deliberates the integrity of the
financial results, annual report and audited financial statements before recommending to the Board to be presented to
the shareholders and public investors.
5. OTHER KEY ELEMENTS OF INTERNAL CONTROL
Other key elements of the system of internal control of the Group are as follows:
• Organisational structure outlining the lines of responsibilities and hierarchical structure for planning, executing,
controlling and monitoring the business operations;
EKOVEST BERHAD
ANNUAL REPORT 2014
30