ST Engineering Annual Report 2020

CORPORATE GOVERNANCE System of Internal Control and Risk Management The Board receives, at regular intervals, updates from the Board Committees on the key business risks, the material controls to manage these risks, and the internal audit reports on the operational effectiveness of the material controls. The Board has received assurance from the Group President & CEO and Group CFO on the adequacy and effectiveness of the Company’s internal controls and risk management systems. The Board is satisfied with the risk management process in place, and, in its opinion, that the effectiveness and adequacy of the material controls to manage the key risks have been appropriately reviewed through the management self-assurance process, as well as reasonable independent assurance provided by the Company’s Internal Audit (IA) function. KEY BUSINESS RISK OF ST ENGINEERING The RSC continues to monitor the implementation of risk management policies and procedures and receives updates to the risk registers maintained by the respective businesses. Such reviews include compliance with major laws and regulations, as well as business disruption risks and their continuity plans. e) Risk Management Self Assurance Process The Risk Management Self Assurance is a process whereby the business risk owners, together with the respective control owners, evaluate and assess the operational business effectiveness of the controls established to manage key risks that are reported in the respective Risk Dashboards. On the basis of this self-assessment, annually, the RSC will receive written assurances from management on the adequacy and effectiveness of the system of risk management and controls to manage the key business risks. / ST ENG I NEER I NG 120 Growth and Competition Human Capital Ethics and Governance Financial Operations Mergers and Acquisition Credit Foreign Exchange Cyber Risks Bribery and Corruption Regulatory Compliance Contract Compliance Business Disruption Product Liability and Safety Talent Management and Succession Planning Total Workplace Safety and Health Product and Technology Obsolescence Key Business Risks