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Corporate Governance
Overview Statement
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT
I.
AUDIT AND RISK COMMITTEE
The Committee which has been renamed as Audit and Risk Committee on 30 May 2019, is an important element of the
Group’s governance structure. Presently, the Committee comprised solely of Independent Non-ExecutiveDirectors following
the resignation of Puan Rozana Zeti binti Basir, a Non-Independent Non-Executive Director on 24 July 2020. The Committee
is chaired by Encik Azizan bin Mohd Noor and the members are Dato’ Rosman bin Abdullah and Datuk Anuar bin Ahmad.
The experience and qualifications of members of the Committee are disclosed in the Our Board of Directors section of
this Annual Report. The Committee has a written Terms of Reference which is available under the ‘Investors’ section of the
Company’s website.
The particulars in relation to the audit and non-audit fees incurred by the Company and its subsidiaries for the FYE2020 are
as follows:
Audit Fees (RM’000)
Non-Audit Fees (RM’000)
2020
2019
2020
2019
Company
124
124
10
10
Subsidiaries
729
808
197
219
TOTAL
853
932
207
229
Information about the Committee, including its work in FYE2020 are set out in the Audit and Risk Committee Report
contained in this Annual Report.
II.
RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK
The Board recognizes the importance of effective risk oversight, risk management and internal control for good corporate
governance and is committed to embedding risk management practices to support the achievement of business objectives
and fulfil corporate governance obligations. The Board is responsible for reviewing and overseeing the risk management
and internal control framework for the Group and for ensuring the Group has an appropriate risk management and internal
control process and procedures. The Audit and Risk Committee provides advice and assistance to the Board in meeting that
responsibility and the role of the former in relation thereto is described in the Statement on Risk Management and Internal
Control of this Annual Report.
The Group has an enterprise risk management framework which is designed to provide a sound framework for managing
the material risks of conducting business. The framework sets out the standards and processes for identifying, monitoring
and reporting of risks impacting the success of strategic objectives and operating plans.
The Board however, recognizes that the enterprise risk management framework must continually evolve to support the type
of business and size of operations of the Group. As such, the Board will, when necessary, put in place appropriate action
plans to further enhance the Group’s risk management and internal control framework.
Annual Report 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
101