SEGMENT KEY INTERNAL CONTROL ELEMENTS DNeX Group’s approved strategic business directions in terms of financial and major initiatives are then cascaded to the Corporate, Business Leaders and all level of employees across DNeX Group and are monitored as Key Performance Indicators (KPIs) using the balanced scorecard methodology. Each division is assessed against the approved budgets and corporate objectives and justification is provided for significant variances. Monitoring The Executive Committee meets on a weekly basis to deliberate on business and financial performance, operating risk and issues and to provide direction and support to business units in performing their assigned duties in an effective manner. The Executive Committee discusses pertinent issues, strategy and corrective or improvement measures to be implemented, where required. Management reports on the business, operational and financial performance of DNeX Group against the committed plans to the Audit Committee where as business related risks and its mitigation plans report to the Risk, Governance and Sustainability Committee subsequently to the Board for approval on a quarterly basis or as and when deemed necessary. Through this mechanism, the Board is informed of all major control issues pertaining to internal control, risk taking and regulatory compliance. This will ensure that business objectives stay on course and that the Management undertakes the required remedial action within the committed timeline. Audit Internal Audit The scope of works of the internal audit function are carried out based on the internal audit plan approved annually by the Audit Committee. For the period under review, the internal auditor has checked for compliance with policies and procedures and the effectiveness of the internal control system. Any significant findings of non-compliance or recommendations for process improvement are highlighted during the quarterly Audit Committee meetings. The internal auditor plays a significant role in verifying and validating whether the Management has met its responsibilities and determining the level of compliance to internal controls. This is carried out by evaluating controls, risk management, and governance processes carried out in pursuit of the business objectives. The Audit Committee reviews the audit report that details out the internal audit observations, the internal auditor’s recommendations, Management’s responses and ascertains that appropriate and prompt remedial actions are taken by the Management. External Audit DNeX Group also receives an audit report and management letter from external auditors who conduct annual statutory audits on the financial statements. Areas for improvements and reservations arising from the interim and final audits and any other matters the external auditors may wish to discuss (in the absence of the Management where necessary) during the course of the statutory audit by the external auditors are brought to the attention of the Audit Committee and Board accordingly. Communication and Feedback DNeX Group recognises the importance of timely dissemination of information and has been transparent and accountable to shareholders, stakeholders and the general public. The Board is committed to ensure that the shareholders and investors are well informed of major developments of DNeX Group through various disclosures and announcement to Bursa Securities including quarterly results, press releases to the media and online investor relations on the company’s website and social media platforms. All feedbacks are regularly collated and analysed with appropriate follow up action by the Group Corporate Communications Department who acts as the point of contact to respond for DNeX Group. The Group Corporate Communications Department also functions as an employee communication channel, to keep employees across DNeX Group informed and engaged on corporate developments and internal activities. This is achieved through internal digital platform and physical engagements through quarterly Townhall sessions. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL DNeX INTEGRATED REPORT 2025 118 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
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