Page 72 - HRC_Annual_Report_2023

70 About HRC Value Creation Management Discussion Leadership
& Analysis

CORPORATE GOVERNANCE OVERVIEW STATEMENT

The Company’s risk management is backed up by the PRINCIPLE C: INTEGRITY IN CORPORATE
implementation of three lines of defence that distinguishes REPORTING AND MEANINGFUL
the three groups which are involved in effective management RELATIONSHIP WITH STAKEHOLDERS
of risk in the Company. The lines of defence are strengthened
by the roles of the Risk & Integrity Executive and the I. Communication with Stakeholders
Chief Internal Auditor (CIA). The Risk and Integrity Executive’s
primary functions are to ensure an adequate risk and control The Board acknowledges the importance of effective
framework is in place, address all business integrity matters communications to ensure that stakeholders are kept informed
and promote an ethical culture within the Company. of the Company’s objectives and strategic aims, performance
and major developments affecting its business.
Internal control and risk-related matters which warrant the
attention of the Board are recommended by the respective The Company has a Corporate Affairs Department to ensure
Board Committees to the Board for its deliberation and approval. effective, transparent and regular communication between
the Company and its stakeholders via channels including:
Further details of the risk management and internal control
framework are provided in the Company’s Statement on (i) Town hall meetings were held quarterly to ensure effective
Risk Management and Internal Control which is available on communication with employees such as to update on the
page 72 of this Annual Report. Company business performance, employee relation matters
and implementation of revised Company’s policies to align
Internal Audit Function with key amendments of the Employment Act 1955.
The Company’s internal audit function comprises the following: (ii) Employee information circulars via electronic mail to all
(i) An independent internal audit department (IAD), which acts employees.
as an independent evaluating body to assist and provide (iii) Engagement with local, state and federal government
assurance to the Board, the BAC and the Management. authorities and Regulators to ensure compliance with laws
The IAD is headed by the CIA who reports functionally and regulations applicable to the Company especially on
to the Chair of the BAC and administratively to the CEO. financial, tax, governance, environment, health & safety,
There is one (1) Internal Auditor who reports to the CIA. licensing and permits.
The internal auditors have sufficient mix of knowledge,
skills and competencies to execute the audit plan; and (iv) Transparent and up-to-date announcements released
through Bursa Malaysia to ensure that updates on material
(ii) The Company’s site internal assurance team (SIA), announcements such as material information, corporate
which comprises of 24 trained and/or ISO certified site exercise, financial reports, annual report, sustainability
internal auditors from various departments in the Company. report and circulars to shareholders were released to
The SIA reviews the site internal assurance and process shareholders and stakeholders.
effectiveness of the Company and reports to the QHSSE
Manager. All SIA internal audit reports are reviewed by (v) The Company’s website which contains useful information
the CIA before finalisation. regarding the Company’s background, vision, mission,
values and purpose, the Board, management team, investor
The CIA will develop a suitable risk based internal audit plan relations, corporate governance policies and documents,
for the following financial year for BAC review and sustainability efforts, announcements, minutes of general
approval before commencement of work. The CIA will present meeting and contact details.
the findings from the IAD to the BAC and the BAC will review
the major findings reported by the internal audit and follow (vi) E-mails and telephone enquiries to the Corporate Affairs
up on Senior Management’s implementation of the Department, whose contact details are published clearly on
recommended actions. the Company’s website at www.hrc.com.my.
The internal audit charter of the IAD provides that the IAD Through the various engagement channels with stakeholders,
will maintain its objectivity and independence, at all times, and the Company can gather feedback to identify and prioritise
will have no direct operational responsibility or authority over what is the important areas that impact or have potential impact
any of the activities audited. The CIA is also required to confirm to the Company’s business operation.
the organisational independence of the IAD to the BAC and In addition, Stakeholders can report improper conduct via
the Board annually. e-mail or in writing to the Whistleblowing Committee in
Further details of the IAD can be found in the Company’s any language, in accordance with the Whistleblowing Policy,
Corporate Governance Report 2023, which is published at which is accessible on the Company’s website.
www.hrc.com.my.