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62 I 2020 ANNUAL REPORT I gOvERNANCE

STATEmENT ON RISK mANAgEmENT AND INTERNAL CONTROL

10. WhISTLEBLOWINg POLICY identified, the auditors provided recommendations to
Management to improve the effectiveness of controls
HRC has established a Whistleblowing Policy (Policy) which where applicable.
provides an avenue for employees and members of the
public to disclose any improper conduct in accordance with b. Certification / recertification audits were carried out by
the procedures under the Policy. SIRIM Berhad for ISO 9001:2015 Quality Management
Systems, ISO 14001:2015 Environmental Management
Under the Policy, a whistleblower will be accorded Systems, and ISO 45001:2018 Occupational Health and
the protection of identity confidentiality, to the extent Safety Management Systems.
reasonably practicable. A whistleblower will also be
protected against any adverse or detrimental actions for The reviews concluded that HRC conformed to the
disclosing improper conduct that has been committed or requirements of the management systems.
is about to be committed within HRC, to the extent
reasonably practicable, provided that the disclosure is REvIEW OF ThIS STATEmENT
made in good faith. Such protection is accorded even
if investigations later reveal that the whistleblower is As required by Paragraph 15.23 of the MMLR, the External
mistaken as to the facts, rules and procedures involved. Auditors have reviewed this Statement on Risk Management
and Internal Control. Their limited assurance review was
The Policy is available on HRC’s corporate website.
performed in accordance with Audit and Assurance Practice
Guide (AAPG) 3 issued by the Malaysian Institute of
11. QUALITY, hEALTh, SECURITY, SAFETY, Accountants. AAPG 3 does not require the External Auditors
ENvIRONmENTAL (QhSSE), SUSTAINABILITY, SOCIAL to form an opinion on the adequacy and effectiveness of the
AND gOvERNANCE
risk management and internal control systems of the Company.
HRC upholds its highest commitment to QHSSE,
sustainability, social responsibilities and governance CONCLUSION
practices via the establishment of HRC’s General Business
Principles and various policies and procedures. The Board has received assurance from the CEO and CFO that
HRC’s financial records are properly maintained and that its
HRC periodically reviews the risks and procedures in place risk management and internal control system is operating
including scenario planning and holds mock exercises and adequately and effectively in addressing the material risks
incident simulations to test the readiness of the employees within the Company in its current business environment.
in responding to those incidents.
The Board has reviewed the adequacy and effectiveness
A comprehensive list of activities and initiatives performed of the risk management and internal control system of the
by HRC is highlighted in the HRC Sustainability Report 2020. Company and is of the view that they are sound and provide a
reasonable level of confidence, but not absolute assurance,
INTERNAL AUDIT that HRC is not affected by any event that cannot be reasonably
foreseen.
The Board recognises that the internal audit function is an
integral component of the governance process. The Chief Internal In the year under review, the Board is not aware of any
Auditor reports directly to the BAC Chair. The Internal Audit significant control failure or weakness that would have resulted
Department supports the BAC by providing an independent in material losses, contingencies or uncertainties requiring
and objective assurance designed to add value and improve separate disclosure in this Annual Report.
HRC’s operations. Following the recent economic effects of the COVID-19

In 2020, the following reviews were performed and reported pandemic, the Board will continue to review measures initiated
to the BAC: by HRC to minimise the potential risk and impact arising from
these situations.
a. Audit engagements were carried out based on the annual
internal audit plan approved by the BAC. The auditors This Statement on Risk Management and Internal Control was
assessed the audit areas with regard to risk exposures, approved by the Board on 26 March 2021.
compliance with approved policies and procedures and
relevant laws and regulations. For any significant gaps