109 How We Are Governed Financial Statements Shareholders’ Information Additional Information MECHANICS FOR AN EFFECTIVE CONTROL FRAMEWORK In 2021, Kenanga Group has accomplished another milestone in our effort to continuously strengthen the Group’s internal controls with the successful completion of the three-year plan of the ‘Ethics Blueprint’. The establishment of an ‘Ethics Risk Management Framework’ (“EMF”) has complemented the existing ‘Compliance Management Framework’ (“CMF”), creating an even more comprehensive control framework for the Group. The CMF and EMF serve as critical tools for GRCS to develop and implement the required policies, procedures and processes as well as to execute the necessary internal controls for continuous assessment, review and monitoring. All these while adapting to the business needs and simultaneously ensuring compliance with the evolving regulatory landscape. Ultimately, an organisation could draw the best strategy but unless the employees are connected with it, the strategy will not succeed. The employees are the best shield of Kenanga Group against any potential non-compliance and misconduct. Additionally, similar to other internal control measures, the CMF and EMF tools shall be continually assessed to ensure their resilience, adequacy and relevance to sustain the potential impact from any non-compliance or misconduct. Risk Monitoring Reporting Risk Mitigation Advisory Advise Board, Senior Management and employees on compliance and ethics risks issues for objective decision-making. Structured programmes or plans in conducting review and monitoring of the areas which pose potential compliance and ethics risks: - Identify routine activities associated to regulatory obligations - Identify critical and high-risk areas - Identify key compliance and ethics risk mitigation activities - Implement controls or correctives measures. Provide Board and Senior Management with the latest updates and information on compliance and ethics risks. Strategic approach to identify and assess compliance and ethics risks, as well as recommend and implement internal controls to address the potential risks: - Identify - Assess - Measure - Implement - Educate & Train CMF/EMF
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