The Board of Directors of KPJ Healthcare Berhad
(KPJ) is pleased to provide the following statement
on the state of internal controls of the Group which
has been prepared in accordance with the
Statement on Risk Management & Internal Control
– Guidelines for Directors of Listed Issuers
endorsed by Bursa Malaysia.
Principle 6 of the Malaysian Code on Corporate Governance
2012 requires the Board to establish a sound risk management
framework and internal control system. The system of internal
controls is designed to provide reasonable assurance that the
likelihood and consequence of adverse events during the
course of business are at an acceptable level within the
context of the competitive environment that the Group
operates under.
BOARD RESPONSIBILITIES
The Board is committed to ensure the adequacy, effectiveness
and integrity of the Group’s governance model, risk
management framework and internal controls system which
include financial, operational, environmental and compliance.
The principal objective of the risk management framework and
internal controls system is to identify and manage business
risks effectively and safeguard assets. The role of the
Managing Director and Management is to assist in the design
and implementation of policies on risk management and
internal control system, identifying and evaluating the risks
faced by the Group and formulating related policies and
procedures to manage these risks, according to the risk
appetite set by the Board.
As the internal controls system is designed to manage and
reduce risks rather than eliminating them, the system can
only provide reasonable assurance to the Board regarding the
achievement of company objectives through:-
• effectiveness and efficiency of operations;
• reliability of financial reporting; and
• compliance with applicable laws and regulations.
The likelihood of achievement of the Group’s objectives is
affected by limitations inherent in any internal control systems.
The Management therefore needs to consider the cost of
implementation of internal controls against the expected
benefits to be derived.
Continuously Safeguarding
Our Operations
168
KPJ Healthcare Berhad annual report
2014
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
(Pursuant to Paragraph 15.26 (b) of the Bursa Malaysia Listing Requirements)
