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60 I 2020 ANNUAL REPORT I gOvERNANCE

STATEmENT ON RISK mANAgEmENT AND INTERNAL CONTROL

3. PLANNINg, mONITORINg AND REPORTINg 4. POLICIES AND PROCEDURES
a. An annual planning and budgetary exercise are Clear, formalised and documented internal policies,
undertaken by all departments to prepare business standards and procedures are in place to ensure compliance
plans and budgets for the forthcoming year. These are with internal controls and relevant laws and regulations.
deliberated on by the BAC to ensure alignment with A list of identified laws and regulations applicable
the strategy as agreed at the latest strategy review. to HRC is documented and maintained to facilitate
Thereafter, the BAC recommends the updated plans compliance. Regular reviews are performed to ensure that
and budget to the Board for approval before its documentation remains current and relevant. Policies
implementation. and procedures are available on HRC’s intranet and are
b. HRC’s financial performances are reviewed regularly accessible to the employees.
by Management. The financial results and variances
(if any) are presented to the Board on a quarterly basis. 5. BUSINESS INTEgRITY mANAgEmENT
c. The Chief Financial Officer (CFO) is required to provide With the enforcement of the Corporate Liability provision
assurance to the BAC that: involving commercial organisations under Section 17A of
the Malaysian Anti-Corruption Commission (MACC)
• Appropriate accounting policies have been adopted Act 2009 from 1 June 2020, as announced by the Prime
and applied consistently, the going concern basis Minister’s Department on 21 May 2020, HRC continues
applied in the Annual Financial Statements is to support the Government initiatives and strong
appropriate, and that prudent judgements and determination to fight corruption.
reasonable estimates have been made in accordance
with the requirements set out in the Malaysian HRC is certified under the Anti-Bribery Management
Financial Reporting Standards (MFRSs) and the System, ISO 37001:2016 and shall continue to adhere with
International Financial Reporting Standards (IFRSs); the standard’s requirements in its day-to-day operations.
• Adequate processes and controls are in place The Risk and Integrity Department is tasked to advocate,
for effective and efficient financial reporting and implement, and ensure HRC business integrity management
disclosure under the requirements of MFRSs, IFRSs, system works in accordance with its intended purposes.
the Companies Act 2016 and Bursa Malaysia BRMC provides oversight on the overall implementation
Securities Berhad’s Main Market Listing Requirements of business integrity within HRC. A checklist detailing
(MMLR); and the Company’s current capability against the MACC’s
• The Annual Financial Statements and the quarterly Guideline on Adequate Procedures was presented to
Financial Statements give a true and fair view of BRMC in February 2020.
the financial position and financial performance HRC’s business integrity management comprises the
of the Company and do not contain any material following key controls:
misstatement.
a. ANTI-BRIBERY & CORRUPTION AND ANTI-mONEY
d. There is a regular and comprehensive flow of LAUNDERINg mANUAL
information from Management to the Board on all
aspects of HRC’s operations to facilitate the monitoring The HRC Anti-Bribery & Corruption and Anti-Money
of performance against HRC’s corporate strategy, Laundering Manual (ABC & AML Manual) outlines the
business plans and regulatory requirements. procedure, integrity screening and ethical behaviours
expected from the employees and business associates
e. The sustainability strategy is developed by management to avoid any instances of bribery, corruption or receipt
and reviewed by the Board to ensure its robustness of monies derived from money laundering activities.
in achieving HRC’s objectives. The sustainability strategy The ABC & AML Manual was approved by the Board
was approved by the Board and is disclosed in the who is committed to ensuring that ethical business
2020 Sustainability Report.
practices are being adhered to and that the Company
has put in place adequate controls to mitigate the risk
of bribery and corruption. Business integrity is also
recognised as one of the main pillars of HRC’s General
Business Principles.