Statement of Internal Control

Responsibility Of The Board

The Board of Directors (“the Board”) of Cagamas Holdings Berhad  together with the boards of other companies within the Cagamas Group of Companies (“the Group”) affirm their overall responsibility  in ensuring that the Group maintains a sound and effective system of internal controls that supports the achievement of the Group’s objectives. 

Responsibility Of The Board

Risk Management

The Board Risk Committee (“BRC”) of Cagamas Berhad (“Cagamas”) oversees the management of risks associated with the Group’s business and operations. 

The BRC is supported by the Risk Management & Compliance Division of Cagamas which provides risk management support and performs risk management reviews on the business and operations of Cagamas.

Risk Management

Key Internal Control Processes

Authority and Responsibility

An organisational structure, job descriptions and Key Results Areas (KRA) which clearly define lines of responsibility and accountability aligned to business and operational requirements.

Planning, Monitoring and Reporting

The Annual Business Plan and Budget is developed, presented and approved by the Board before implementation. In addition, actual performances are reviewed against the targeted results on a quarterly basis allowing timely responses and corrective actions to be taken to mitigate risks.

Policies and Procedures

Clear, formalised and documented internal policies and procedures manuals are in place to ensure compliance with internal controls and relevant laws and regulations.

Independent Review by Internal Audit Division

The Internal Audit Division provides reasonable assurance to the Board by conducting an independent review on the adequacy, effectiveness and integrity of the system of internal controls.

Performance Measurement and Staff Competency

Key Performance Indicators (KPIs), which are based on the Performance Scorecard approach, are used to track and measure staff performance.

Business Continuity Planning

A Business Continuity Plan, including a Disaster Recovery Plan is in place to ensure continuity of business operations.

Shariah Governance

Cagamas is guided by Shariah rulings issued by BNM as well as Securities Commission.