Baker Technology LimitedAnnual Report 2014
61
Principle 11: RiskManagement and Internal Controls
TheBoardhasoverall responsibility for themanagementof theGroup’skey risks tosafeguardshareholders’ interests
and its assets.
The Audit Committee (“AC”) assists the Board in providing riskmanagement oversight while the ownership of day-to-
daymanagement andmonitoringof existing internal control systems aredelegated toManagementwhich comprise the
ExecutiveDirectorsandseniorexecutivesof theGroup.
The AC, with the assistance of the internal auditors, reviews the adequacy and effectiveness of the Company’s
internal control systems, including financial, operational, compliance and information technology controls and
risks management policies and systems established by the Management on an annual basis. In addition, the
external auditors will highlight any material control weaknesses within the Group discovered in the course of the
statutory audit. Anymaterial findings from both the internal and external auditors together with the improvement
recommendations are reported to the AC. The AC will review the internal and external auditors’ comments and
findings, ensure that there are adequate internal controlswithin theGroup and followupon actions implemented.
As the environment in which theGroup operates changes, risks and opportunities change. Under the enterprise-wide
riskmanagement framework (“ERM Framework”) established by theCompany, Management at all levels are expected
to constantly review thebusinessoperations and theenvironment that theGroupoperates inorder to identifyareas and
ensuremitigatingmeasures arepromptlydeveloped toaddress these risks. Aspart of the framework, risk registerswere
established todocument the key risks, risk appetite, risk tolerance, risk evaluation andmitigating controls.Management
will regularly review thekey risks, bothexistingandemergingnew risks; determine thekeyowners for the risks identified;
ensuring treatment measures for mitigating these risks are promptly and properly implemented; and ensuring policies
and controls are compliedwith. Management reports to theAC on a quarterly basis. Mitigating actions and additional
countermeasures inmanaging thekey risks, aswell asactionplans toaddress thegapsareconsideredanddocumented.
For 2014, theBoardand theAChad inaddition receivedassurance from theCEOand theCFO that theGroup’s financial
recordshadbeenproperlymaintainedand thefinancial statementsgavea trueand fair viewof theCompany’soperations
andfinances; andon theadequacyandeffectivenessof theCompany’s riskmanagementand internal control systems.
Basedon theERMFrameworkestablished, reviewscarriedoutby theAC, theworkperformedby the internal andexternal
auditorsandassurance from theManagement, theBoard,with theconcurrenceof theAC, isof theopinion that the internal
controls and riskmanagement systemsmaintainedbyManagement during the financial year and up to thedate of this
report are adequate in addressing financial, operational, compliance and information technology risks and tomeet the
currentscopeof theGroup’sbusinessoperations.TheACand theBoardnote thatnosystemof internalcontrols iscapable
ofprovidingabsoluteassuranceagainst theoccurrenceofmaterialerrors,poor judgment indecision-making,humanerror,
losses, fraudorother irregularities.
Principle 12: Audit Committee
TheAudit Committee (“AC”) comprises the following:
Mr AngMiahKhiang
(Chairman and IndependentDirector)
MrWongMengYeng
(Lead IndependentDirector)
MsHanSahHeokVicky
(IndependentDirector)
The Board is of the view that the ACmembers are appropriately qualified, with at least twomembers having the
requisite financialmanagement expertise andexperience.
