Page 82 - S P Setia Annual Report 2013
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80 | corporate Governance S P SETIA BERHAD GROUP Annual Report 2013





STATEMENT ON RISK MANAGEMENT AND


INTERNAL CONTROL (CONT’D)





• Actual performance compared with budget is reviewed with detailed explanation provided for any major variances.

• The President/Chief Executive Offcer, Deputy President/Chief Operating Offcer and Executive Vice Presidents meet on a monthly basis with
all Divisional Heads and Business Unit Heads to discuss on the Group’s fnancial performance, business development, management issues and
corporate issues.

• Standard Operating Procedures which include policies and procedures within the Group are continuously reviewed and updated.

• The Divisional Heads and Business Unit Heads are responsible for the identifcation and evaluation of signifcant risks applicable to their areas
of business together with the design and operation of suitable internal controls.


• Corporate values, which emphasise ethical behaviour are set out in the Group’s Employee Handbook.
The Group’s system of internal control does not apply to Associate Companies and Jointly Controlled Entities where the Group does not have full
management control over these entities. However, the Group’s interest is served through representations on the Board of the respective Associate
Companies and Jointly Controlled Entities.

review of the statement By external auDitors


The external auditors have reviewed this Statement on Risk Management and Internal Control for inclusion in the annual report for the fnancial year
ended 31 October 2013. Based on their review, the external auditors have reported to the Board that nothing had come to their attention that causes
them to believe that the Statement on Risk Management and Internal Control is inconsistent with their understanding of the processes the Board has
adopted in the review of the adequacy and integrity of the risk management and internal control of the Group.

conclusion


The Board has also received reasonable assurance from the President/Chief Executive Offcer and Executive Vice-President/Chief Financial Offcer that the
Group’s risk management and internal control systems are operating adequately and effectively, in all material respects, based on the risk management
framework adopted by the Group.

This statement was approved by the Audit Committee on 12 December 2013.
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