KENANGA ANNUAL REPORT 2020

81 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 3.9 List of Disciplinary Actions Meted Out on Employees’ Misconducts within KIBB Group The list of disciplinary actions meted out on employees who had committed misconduct within KIBB Group tabled by Head of Group Human Resource, were reviewed and deliberated by the AC at its meetings held on 26 February 2020, 22 July 2020 and 27 October 2020 respectively. 3.10 Post Approval Review by Independent Credit Review (“ICR”) The reports on the Post Approval Review conducted on Share Margin Financing and Corporate Loans by the ICR, were reviewed and deliberated by the AC at its meetings held on 30 January 2020 and 29 April 2020 respectively, as required under Paragraph 17.5 of BNM’s Policy Document on Credit Risk.* * Paragraph 17.5 of BNM’s Policy Document on Credit Risk requires the outcomes of independent credit reviews to be escalated directly to the Board Risk Committee, Board Audit Committee and Senior Management. 3.11 Joint Meeting Between the AC and the GBRC Pursuant to BNM’s Policy Document on Risk Governance, the GBRC and the AC were 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 this regard, a joint meeting between the AC and the GBRC was held on 11 August 2020 as per BNM’s requirement aforementioned. 3.12 GIA’s Succession Plan The AC had, at its meeting on 26 February 2020, recommended the revised Succession Plan (2019 Review) for GIA to the GNC for its further recommendation to the Board for approval, as recommended by the Group Talent Committee. The same was approved by the Board on 27 February 2020. 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 2020 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 2020 amounted to RM4.08 million. 4.5 As at 31 December 2020, GIA’s headcount was twenty (20).