Page 75 - HRC_Annual_Report_2023

Financial Reports &
Governance Other Information HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 73

THREE LINES OF DEFENCE

BOARD OF DIRECTORS

BTC BPRC BRMC BNRC BWC BAC

MANAGEMENT

RD
1 ST LINE OF DEFENCE 2 LINE OF DEFENCE 3 LINE OF DEFENCE REGULATOR
ND
RISK MANAGEMENT,
MANAGEMENT INTERNAL CONTROL ASSURANCE, GOVERNANCE & INTERNAL AUDIT
CONTROL MEASURES EXTERNAL AUDITOR
COMPLIANCE
The 1 st level of the control The 2 nd line of defence, The 3 rd line of defence,
environment is the business operations provide oversight function offering independent challenge
which perform day-to day risk and set directions, define policy to the levels of assurance
management activities and provide assurance provided by business operations
and the oversight function

Note: The director membership of each Board Committee is shown under the Board of Directors’ profile on pages 50 to 53 of
this Annual Report.

The HRC risk register is segregated into four (4) major 2. ORGANISATION STRUCTURE AND MANAGEMENT
components, which are: Operational Risk, Financial & Commercial COMMITTEE
Risk, Strategic Risk and Legal & Regulatory Risk.
a. An organisational structure, which is aligned to the
Top 20 corporate risks have been deliberated on a quarterly business and operational requirements, and with
basis by the leadership team before presenting to the BRMC clearly defined lines of responsibility, accountability and
for review and further deliberation. We continue to scan and levels of authority, is in place to assist in implementing
monitor our operating and external environments to identify HRC’s strategies and day-to-day business activities.
and manage emerging risks and opportunities.
b. The Management Team supports the Chief Executive
Officer (CEO) in accomplishing the vision, strategies and
KEY INTERNAL CONTROLS
objectives set for HRC.
HRC’s internal control system comprises the following key c. Various functional committees have also been
processes: established across the Company to ensure HRC’s
activities and operations are properly aligned towards
1. AUTHORITY AND RESPONSIBILITY
achieving its organisational goals and objectives.
a. Certain responsibilities are delegated to the Board
Committees through clearly defined Terms of Reference
(TOR) which are reviewed annually.
b. The Manual of Authorities is reviewed periodically
to reflect the authority and authorisation limits of
Management in all aspects of HRC’s major business
operations and regulatory functions.