Page 46 - ar2013.pdf

44
COSCO Corporation (Singapore) Limited
The Group’s key internal controls include:
a) establishment of risk management policies and systems;
b) establishment of policies and approval limits for key financial and operational matters, and issues reserved for the Board;
c) documents of key processes and procedures;
d) segregation of incompatible functions which give rise to a risk of errors or irregularities not being promptly detected;
e) maintenance of proper accounting records;
f ) safeguarding of assets;
g) ensuring compliance with appropriate legislation and regulations; and
h) engaging qualified and experience persons to take charge of important functions.
Operational risk management measures implemented by the Group include the implementation of safety, security and internal
control measures and taking up appropriate insurance coverage.
Details of the Group’s financial risk management measures are outlined on pages 131 to 138 in the Notes to the Financial
Statements.
In the course of the year, the AC and the Enterprise Risk Management Committee have reviewed, together with management
and the internal and external auditors, the major business risks and effectiveness of the Group’s internal controls, including
controls for managing financial, operational, compliance and information technology controls and risk management systems.
Internal control standards are set with the objective of providing reasonable assurance that risks are effectively managed by the
Group.
The Board has also received assurance from the President and Chief Financial Officer that the financial records as at 31
December 2013 have been properly maintained and the financial statements for the financial year under review give a true and
fair view of the Company’s operations and finances and regarding the effectiveness of the Company’s risk management and
internal control systems.
Based on the work performed by the internal and external auditors, the Group’s framework of management control, the
review procedures established and maintained by the Company to monitor the key controls and procedures and to ensure
their effectiveness, the annual reviews performed by the management, Board committees and the Board, the Board, with the
concurrence of the AC and Enterprise Risk Management Committee, is of the view that the Group’s framework of internal
controls in relation to the financial, operational, compliance and information technology controls and risk management system
is adequate as at 31 December 2013 to provide reasonable assurance of the integrity and effectiveness of the Company in
safeguarding its assets and shareholders’ value.
The Board notes that the system of internal controls and risk management put in place by the Group provides reasonable,
but not absolute, assurance that the Group will not be adversely affected by any event that could be reasonably foreseen.
In this regard, the Board also notes that no system of controls and risk management can provide absolute assurance against
irregularities especially those arising from poor judgment in decision making, human error and fraud.
CORPORATE
GOVERNANCE
Corporate Gover nance and Transparency