131 How We Are Governed Financial Statements Shareholders’ Information Additional Information 3.9 Post Approval Review by Independent Credit Review (“ICR”) Unit Pursuant to Paragraph 17.5 of BNM’s Policy Document on Credit Risk, the outcomes of independent credit reviews are required to be escalated directly to the Board Risk Committee, Board Audit Committee and Senior Management. In fulfilling the aforementioned requirement, ICR Unit of Group Risk Management, upon completion of its review, would table the review report to the AC for its deliberation. In this regard, during 2021, the AC had deliberated on the following ICR review reports tabled by the ICR Unit: Date of AC Meeting Titles of Review Report 24 February 2021 Post Approval Review of Kenanga Capital Islamic Sdn Bhd’s Portfolio 27 April 2021 Post Approval Review on Share margin Financing Porfolio of KIBB During its deliberation, the AC had taken note of the findings raised by the ICR Unit arising from the respective reports, as well as the recommendations made by the ICR Unit together with Management’s action plans in addressing those findings. 3.10 Joint Meeting Between the AC and the GBRC Pursuant 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 27 July 2021 as per the aforementioned requirement by BNM. 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 2021 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 2021 amounted to RM4.325 million. 4.5 As at 31 December 2021, GIA’s headcount was nineteen (19).
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