STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Paragraph 15.26(b) of the Listing Requirements of Bursa Securities specified that the Board of Directors is to provide a Statement on Risk Management and Internal Control for the Group. The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of internal controls to safeguard shareholders' investments and the Group's assets. The Board is pleased to include a statement on the state of the Group's risk management and internal control during the period under review. The statement is prepared in accordance with the Listing Requirements and as guided by the "Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers". RISK MANAGEMENT The function of Risk Management was included under the Audit Committee scope of reference. The Group has established the Risk Management Committee (“RMC”) with the primary responsibility of ensuring the effective functioning of the integrated risk management function within Destini Group. The RMC assists the Board in identifying, assessing, monitoring and managing the key risks that may affect the Group’s business objectives and operations. For FY2026, the key risk areas identified and monitored by the RMC comprise the following: (i) Financial reporting risk, particularly the risk of inaccurate or inappropriate recognition and measurement of revenue and contract assets arising from long-term contracts, which may affect the reliability and accuracy of the Group’s financial statements; (ii) Credit and liquidity risk, including the risk of delayed or non-recovery of trade receivables and contract assets, as well as the adequacy of expected credit loss (“ECL”) provisions and the Group’s ability to meet its financial obligations as they fall due; (iii) Customer concentration risk, arising from the Group’s dependence on a limited number of major customers and government-related contracts, which may expose the Group to fluctuations in revenue and business performance; (iv) Legal and litigation risk, arising from material claims, disputes, contractual matters and potential legal proceedings involving the Group; (v) Intercompany and subsidiary funding risk, including the recoverability of intercompany balances and the Group’s ability to provide adequate funding and financial support to its subsidiaries; and (vi) Operational, people, compliance and information technology risks, including business continuity, operational disruptions, talent and workforce-related matters, regulatory and compliance requirements, cybersecurity and the resilience of the Group’s information technology infrastructure. The RMC also reviews and evaluates the adequacy and effectiveness of the Group’s risk management policies and procedures and monitors the adequacy of risk reporting relating to the Group’s core business activities. Through these arrangements, the Board is kept apprised of the Group’s significant risk exposures and the measures implemented by Management to manage and mitigate such risks. GOVERNANCE DESTINI BERHAD 100 ANNUAL REPORT 2026
RkJQdWJsaXNoZXIy NDgzMzc=