BIMB Integrated Annual Report 2017

CORPORATE GOVERNANCE OVERVIEW STATEMENT Internal Audit Internal audit is independent of the activities of its audit. The Internal Auditors of BHB and its subsidiaries (save for Syarikat Takaful Malaysia Berhad) is carried out by the Internal Audit Division of Bank Islam (“ Internal Audit ”). Its objectives, scope of activities and responsibilities are defined in the Internal Audit Charter. Internal Audit reports functionally to the AEC. Internal Audit adopts a risk- based approach in its auditing activities. An annual audit plan is developed using a structured risk and control assessment framework through which the inherent risk and control effectiveness of each auditable entity in BHB is assessed. Disclosure on the activities of the Internal Audit are provided at pages 122 to 123 of this Integrated Annual Report and in the CG Report. PRINCIPLE C: INTERGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS The Board has direct control over the Company, and therefore owes fiduciary duties to the Stakeholders. The duty of care requires Directors to exercise good business judgement when making decisions to safeguard the interest of the Company and its Stakeholders. The Board recognises the importance of timely, complete, accurate and equal dissemination of information with regard to the Company and its Group’s performance and other matters affecting Stakeholders’ interest. Corporate Disclosure Policy (“CDP”) A CDP has been formulated to enhance BHB’s corporate governance, particularly in the area of transparent disclosure to the public. The purpose of the CDP is to enable Shareholders and stakeholders to access business information beyond the Company’s financial disclosure. In addition, it ensures that both the Board and Management are able to communicate effectively with stakeholders on a timely basis. Investor Relations/Stakeholders Policy The Company has in place an IR Policy to ensure that stakeholders, investors and the investment community, both local and international, as well as the general public are provided with relevant, timely and comprehensive information about BHB. The Company is committed to providing effective and open communication in order to improve disclosure and transparency. The objective of the IR Policy is to lay down the principles and practices to be adopted by BHB in handling its communication so that investors and potential investors could make an informed investment decision and for the public at large to have a clear understanding of the Group and its objectives. Our investors relations activities promote regular, effective and fair communication with shareholders. Briefing sessions for the media and analysts are conducted when quarterly results are released. BHB and its major subsidiaries have been keeping a high standard of dissemination of relevant and material information through various channels in order to maintain a close relationship with our institutional investors, fund managers and research analysts. These channels include: • Quarterly and Full Year Financial Results Announcements • Analysts Briefing Presentations • Conference and Roadshows • Media Coverage • IR section of the website Disclosure on the activities of the Investor Relations are provided in the CG Report. 112 BIMB HOLDINGS BERHAD Integrated Annual Report 2017