KENANGA ANNUAL REPORT 2019

H OW W E A R E G O V E R N E D 1 2 3 4 5 81 6 7 3.8 Joint Meeting between the AC and the Group Board Risk Committee (“GBRC”) Pursuant to BNM’s Policy Document on Risk Governance, the GBRC and the AC are expected to periodically meet to ensure effective exchange of information so as to enable effective coverage of all risks, including emerging risk issues that could have an impact on KIBB Group’s risk appetite and business plans. In that regard, a joint meeting between the AC and the GBRC was held on 25 July 2019 as per the aforementioned BNM’s requirement. 4. INTERNAL AUDIT FUNCTION 4.1 The internal audit function of KIBB is established in-house. In discharging its responsibilities, GIA, which reports functionally to the AC and administratively to the Group Managing Director, provides independent and objective assurance to the Board and Management that the policies, procedures and operations that Management has put in place for risk management, control and governance are adequate, operating effectively and efficiently, and in compliance with prescribed laws and regulations. 4.2 During the year under review, GIA carried out internal audit reviews based on its 2019 Audit Plan as approved by the AC. This Audit Plan was developed using a risk-based methodology. The audit reviews conducted by GIA included business support processes, Information Technology/ technical audits and compliance audits on regulatory requirements. 4.3 All GIA’s reports, detailing the audit findings, audit recommendations, as well as Management’s responses to those recommendations were circulated to the Group Managing Director and Heads of the respective Divisions/ Departments within KIBB Group. Follow-up reviews were performed on the implementation status of the audit recommendations and reported to the AC accordingly. 4.4 The total costs incurred by GIA in discharging its functions and responsibilities in 2019 amounted to RM4.15 million. 4.5 As at 31 December 2019, GIA’s headcount was 20. AUDIT COMMITTEE REPORT