175 Our Governance S0 S1 S2 S3 S4 S5 ANNUAL REPORT 2021 CORPORATE GOVERNANCE OVERVIEW STATEMENT PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT Board Audit Committee Board Audit Committee (BAC) plays a key role in the Company’s governance structure. BAC is positioned to rigorously challenge and ask probing questions on the Company’s financial reporting process, related party transactions and conflict of interest, internal control, internal audit, and external audit processes. In line with MCCG 2021, the Chairman of BAC is not the Chairman of the Board. BAC comprised of majority INEDs. During the year under review, BAC members had attended professional development courses in accounting and auditing standards to keep abreast with changes in the regulatory environment. The BAC report is available at pages 185 to 188 of this Report. Board Risk Management Committee Board Risk Management Committee (BRMC) was established to oversee the Company’s risk management framework and policies. BRMC is responsible to determine the Company’s risk tolerance and actively identify, assess, and monitor key business risks to safeguard shareholders’ investments and the Company’s assets. The Corporate Risk Profile of the Group and the mitigation plan for the risks are being monitored by BRMC on quarterly basis. The risks are categorised into several areas namely strategic, regulatory, operational, human capital, information technology, reputational and financial. Risk Management and Internal Controls The Company has a well-resourced internal audit function which critically reviews all aspects of the Company’s activities and internal controls. Comprehensive audits on practices, procedures, compliance, expenditures, and internal controls for all business and support units and subsidiaries are undertaken on a regular basis. The Head of Internal Audit has a direct access to the Board through the Chairman of the BAC. The effectiveness of internal control system is reviewed from time to time. The Board Committees are entrusted with their respective functions which are aimed at supporting the Board’s oversight roles of proper implementation of corporate governance practices, audit, risk management and internal control systems. The Board is guided by the Risk Management Policy Framework to ensure effective oversight of risks and controls in the Group. The effectiveness of risk management and internal control is regularly reviewed to ensure they are working as intended. Details of Risk Management Framework and internal control system of Malaysia Airports Group are set out in the Statement on Risk Management and Internal Control on pages 178 to 184 of this Report. Financial Reporting In presenting the annual audited financial statements and quarterly financial results to the shareholders, the Directors ensures the information presented contains a balanced and comprehensive assessment of the Group’s financial position and prospects. BAC assists the Board in reviewing the information disclosed in the financial statements and ensuring its completeness, accuracy, and adequacy. The financial statements of Malaysia Airports Group for the financial year ended 31 December 2021 are prepared in accordance with Malaysian Financial Reporting Standards (MFRSs) as issued by the Malaysian Accounting Standards Board, International Financial Reporting Standards and the requirements of the Companies Act 2016. Board Audit Committee and Board Risk Management Committee are primarily responsible for risk management and internal control oversight:
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