BIMB Integrated Annual Report 2017

57 Intended Outcome Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives. The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed. Practice 9.1 The board should establish an effective risk management and internal control framework. Application : Applied. Explanation on application of the practice : The Board has established an organisation structure and charter with clear defined lines of responsibility, authority limits and accountability in association with BHB’s Group business and operational requirements in order to maintain a sound control environment. The effectiveness of risk management and internal controls is ensured by the establishment of the Board Risk Committee (“ BRC ”) and the Group Risk Management Committee (“ GRMC ”). The BRC regularly evaluates the adequacy and effectiveness of the Group’s risk management by reviewing the actions taken on lapses/deficiencies identified in reports presented by the respective subsidiaries at the GRMC. Further details on the state of the Group’s risk and internal controls during FY2017 can be found in the Statement on Risk Management and Internal Controls on page 139 of BHB’s Integrated Annual Report 2017.