British American Tobacco Malaysia - Risk Management and Internal Control
We recognise the importance of sound risk management practices and internal controls to safeguard shareholders’ investments and British American Tobacco (Malaysia) Berhad and subsidiaries’ (BATM Group) assets.
The Board affirms its overall responsibility for the BATM Group’s system of risk management and internal control which includes the establishment of an appropriate control environment and framework, as well as reviewing its adequacy and integrity. The Board as such is responsible for determining the nature and extent of the strategic risks that the BATM Group is willing to take to achieve its objectives, whilst in parallel maintaining sound risk management and systems of internal control. By virtue of the controversial nature of the industry in which we operate, the Board does not consider its strategic risk appetite to be high, and it seeks to minimize risks at an operational level.
The Board tasks management to identify and assess the risks faced by the BATM Group, and thereafter design, implement and monitor appropriate internal controls to control and mitigate those risks. There are inherent limitations to any system of internal control and the system is designed to manage and minimise impact rather than completely eliminate risks that may impact the achievement of the BATM Group’s business objectives. Accordingly, it can only provide reasonable but not absolute assurance against material misstatement or loss. The system of internal control covers, inter alia, financial, operational and compliance controls and risk management procedures.
The BATM Group has in place a systematic application of processes for identifying, evaluating, monitoring and managing significant risks faced by the BATM Group and this process includes reviewing and updating the system of internal controls to take into consideration changes in the regulatory, business and external environment. This process is reviewed by the Board via the Audit Committee.
Further details on our risk management and internal control as well as the Audit Committee’s responsibilities and duties can be found in the Governance section of our Annual Report.
The BATM Group’s Standards of Business Conduct underpin our commitment to good corporate behaviour, and is an integral part of the BATM Group’s system of corporate governance. The Standards of Business Conduct require all employees to act with high standards of business integrity, comply with all applicable laws and regulations, and ensure that business standards are not compromised for the sake of results.
Find out more about our Standards of Business Conduct