Page 53 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 51

No Principal Responsibilities Explanation and updates for FY 2020

iii Overseeing the conduct of the The Board oversees the Company’s business and assesses the performance of
Company’s business Management to determine whether the business is properly managed. This includes
assessments on financial management, corporate governance, risk management,
compliance to laws and regulations and human capital management.
The Board and Board Committees reviews, challenges and deliberates on proposals
tabled by Management and discusses the Company’s performance during Board and
Board Committee meetings.

A scorecard based on Key Performance Indicators (KPIs) set for Management is
utilised by the Board to measure the performance and effectiveness of the Company.

iv Identifying principal risks and To ensure appropriate internal controls and mitigation measures are in place, the
ensuring the implementation BAC and BRMC assists the Board in assessing and anticipating potential risks to the
of appropriate internal controls Company and recommend appropriate actions to be taken to mitigate the risks.
and mitigation measures
The BAC oversees the internal controls system of the Company while the BRMC
ensures that an effective risk management framework is in place. The Committees also
ensure that the Company’s internal controls and risk management framework are
periodically tested for its effectiveness and integrity.

v Succession planning The BNRC assists the Board to oversee the nomination function to ensure orderly
succession planning for Directors and key members of senior management holding
the positions of Chief Executive Officer (CEO), Chief Financial Officer (CFO) and
Human Resource (HR) Manager. The BNRC also oversees the annual assessment of
the effectiveness of the Board and Board Committees.

vi Overseeing the development The Company keeps its stakeholders updated through communications published
and implementation of a on the Company’s website and announcements made to Bursa Malaysia, including
stakeholder communications general announcements and the Company’s quarterly financial reports, annual report
policy for the Company and sustainability report, circulars to shareholders and press statements, as well as
virtual townhall meetings and employee information circulars, whenever required.
Apart from that, the Company continues to engage in active communications with
the communities near the Company’s site in Port Dickson to foster close relationships
and keep its neighbours informed on matters that may affect them.

vii Reviewing the adequacy The Board and Management continue to base the efficacy of the Company’s internal
and the integrity of the control systems on the control framework approved by the Board.
management information and The Board also reviews the integrity of the Company’s financial and non-financial
internal control systems of reporting with the assistance of the BAC and the BRMC.
the Company
Further details of the risk management and internal control framework are provided
in the Company’s Statement on Risk Management and Internal Control which is
available on page 58 of this Annual Report.

The primary roles and responsibilities of the Board and Board Committees are contained in the Board Charter and the Terms of
References of the respective Board Committees. They are published on the Company’s website at www.hrc.com.my.