Page 61 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 59

ThREE LINES OF DEFENCE

BOARD OF DIRECTORS

BTC BPRC BRmC BNRC BWC BAC

mANAgEmENT

••••
1 LINE OF DEFENCE 2 LINE OF DEFENCE 3 LINE OF DEFENCE REgULATOR
ST
RD
ND
RISK mANAgEmENT,
mANAgEmENT INTERNAL CONTROL ASSURANCE, gOvERNANCE & INTERNAL AUDIT ExTERNAL AUDITOR
CONTROL mEASURES
COmPLIANCE
rd
The 1 st level of the control The 2 line of defence, The 3 line of defence,
nd
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 page 42 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 & COmmITTEE
Commercial Risk, Strategic Risk and Legal & Regulatory Risk.
a. An organisational structure, which is aligned to the
All risks will be deliberated on a quarterly basis by the senior business and operational requirements, and with
management before being brought to the BRMC for review and clearly defined lines of responsibility, accountability and
further deliberation. levels of authority, is in place to assist in implementing
HRC’s strategies and day-to-day business activities.
KEY INTERNAL CONTROLS b. The Management team serves in an advisory capacity
to the Chief Executive Officer (CEO) in accomplishing
HRC’s internal control system comprises the following key
processes: the vision, strategies and objectives set for HRC.
1. AUThORITY AND RESPONSIBILITY c. Various functional committees have also been
established across the Company to ensure HRC’s
a. Certain responsibilities are delegated to the Board activities and operations are properly aligned towards
Committees through clearly defined Terms of Reference achieving its organisational goals and objectives.
(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.