Risk Committee The Company has not established a separate Risk Committee. The responsibility for risk governance and oversight of the ERM framework and program rests with the AC. The AC is independent and assists the Company in its oversight of risk management. The AC’s responsibilities on risk management are as follows: • to review and adopt the risk governance approach and risk policies of the Company which are then proposed to the Board; • to review the risk management methodology adopted by the Company; • to review the strategic, financial, operational, regulatory, compliance, information technology and other emerging risks and threats relevant to the Company; • to review Management’s assessment of risks and Management’s action plans to mitigate such risks; • to propose the risk appetite and risk tolerance limits to the Board; • to review any material breaches of risk limits; • to review the Company’s anti-fraud procedures including the Whistle Blowing Policy and ensures appropriate follow-up actions; • to report to the Board on matters, findings and recommendations relating to risk management; and • to review the adequacy and effectiveness of the Company’s risk management systems. Adequacy and Effectiveness of Risk Management and Internal Control Systems The Board has received assurances from: Provision 9.2 (a) the CEO and the Chief Financial Officer (“CFO”) that the financial records have been properly maintained and the financial statements give a true and fair view of the Group’s operations and finances; (b) the CEO and other key management personnel who are responsible for the Group’s risk management and internal control system that the Group’s risk management and internal control system remain adequate and effective; and (c) there has been full conformance with the risk governance activities and responsibilities as outlined in the Company’s Risk Governance and Internal Control Framework Manual. The Board, with the concurrence of the AC, is of the opinion that the Group’s internal controls (including financial, operational, compliance and information technology controls) and risk management systems were adequate and effective during the financial year and up to the date of this report. This opinion is based on the internal control policies and procedures established and maintained by the Company, the work done by the Internal and External Auditors, reviews carried out by Management, various Board Committees and the Board. The Board, together with the AC and Management, will continue to enhance and improve the existing internal controls framework to identify and mitigate these risks. There were no material weaknesses identified by the Board or the AC for FY2024. Rule 1207 (10) The system of internal controls and risk management established by the Company provides reasonable, but not absolute assurance that the Group will not be adversely affected by any event that can be reasonably foreseen as it strives to achieve its business objectives. The Board is also mindful that no system of internal controls could provide absolute assurance against the occurrence of material errors, poor judgment in decision making, human error losses, fraud or other irregularities. 40 KEONG HONG HOLDINGS LIMITED CORPORATE GOVERNANCE REPORT
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