KENANGA ANNUAL REPORT 2019

K E N A N G A I N V E S T M E N T B A N K B E R H A D A n n u a l R e p o r t 2 0 1 9 86 We recognise that engaging with vendors exposes the organisation to business disruption, financial, legal and even reputational risks. To ensure quality and efficient delivery, robust guidelines and policies have been put in place for suppliers and employees, underpinned by good governance, to ensure sustainable procurement. The Group Procurement Policy serves as guidance for all employees of the Group in handling procurement-related activities. Our Group Code of Conduct for Vendors underlines honesty, fairness and transparency, reflecting the Group’s values, ethics and integrity. In acknowledging that the quality of products and services provided by vendors impacts our delivery, we uphold the highest standards of ethics and integrity in business practices and relationships with vendors and suppliers. More information on this can be found in the Ethics and Compliance Statement on pages 60 to 68 of this Annual Report. To further reduce procurement and supply chain risks, we conduct regular performance evaluation on vendors and suppliers. The GBEI introduced several measures to lay the foundation for charting the Group’s strategy on ethics and integrity. These include, among others, establishing the GBEI Charter, identifying the roles of the parties in the Group for ethics risk management and preparing a checklist for the purpose of assessing compliance with the Guidelines on Adequate Procedures issued pursuant to section 17A of the Malaysian Anti-Corruption Commission Act 2009. The measures also provide the support required to meet regulatory requirements. More information on this can be found in the Ethics and Compliance Statement on pages 60 to 68 of this Annual Report. ANTI-FRAUD, BRIBERY AND CORRUPTION & ANTI-MONEY LAUNDERING AND COUNTER- FINANCING OF TERRORISM Fraud, bribery, corruption, money laundering and the financing of terrorism go against the Group’s core values and undermine the viability of its business and operations. Reflecting this, the Group takes a zero-tolerance approach to these acts, as well as to any other manifestations of corrupt and unethical business practices. The Group adopts a robust and all- encompassing strategy to prevent, detect and investigate incidences of fraud, bribery, corruption, money-laundering and the financing of terrorism while holding perpetrators strictly to account. Control environments are reviewed periodically and if required, revised to align them with industry practices and the applicable laws and regulations. A crucial element in its fight against corrupt practices is the Group’s provision of an adequate and safe platform for the reporting of any offence or potential wrongdoing. In this regard, the Group has in place a Group Whistleblowing Policy & Guidance Notes. These spell out the framework for the policy and offer various channels for reporting any illegal or unethical practice. The Group recognises that the first line of defence in its fight against corruption and illegal acts is the inculcation of principles of ethics and integrity in its everyday business and operations. It thus requires its employees to reflect these values in their undertakings at all times. Additionally, the Group constantly reminds its employees of the importance of this through continual education and awareness campaigns. One of our key education and awareness programmes is our annual Fraud Awareness Week (“ FAW ”). This was held for the third (3 rd ) time from 18 to 22 November 2019. The participation of various capital-market stakeholders in the FAW was meant to underscore the importance the Group placed on fighting fraud. The Group is proud to continue setting a leading example in this area. More information on this can be found in the Ethics and Compliance Statement on pages 60 to 68 of this Annual Report. SUPPLY CHAIN Kenanga Group subscribes to a resilient supply chain to ensure smooth daily business operations and to embed sustainable practices in the organisation. SUSTAINABILITY STATEMENT Our Supplier Evaluation Model Proof of Concept Company Background Check Credit Assessment Financial Stability Business Continuity Strategy Pricing Quality of Product Supplier Evaluation Criteria