Page 107 - KWAP_AR2022

FoR betteR GoveRnAnce Annual Report 2022 105

RESPONSIBILITIES AND ACCOUNTABILITIES OF COMPONENTS OF AN EFFECTIVE BOARD
THE BOARD
Structuring a high-performing Board
Under Section 6 of KWAP Act, the Board shall be
responsible for the administration and management of KWAP aspires to put in place a Board structure that
KWAP. The Board is therefore entrusted to administer, matches the organisational requirements. In order for
set the strategic directions, and oversee the management the Board to operate efficiently and give the right level
of KWAP with a focus on protecting and enhancing the of attention and consideration to relevant matters,
interests of its contributors and stakeholders. the Board Committees assist the Board in fulfilling its
oversight functions. The terms of reference of each
In line with its statutory responsibility and as part of Board Committee defines committees’ roles with
its functions, the Board formulates and determines composition to complement the Board’s requirements.
administration and management of policies and Board Members are selected based on the requirements
procedures to ensure KWAP achieves its objectives with as prescribed by KWAP Act. The performance of
success and excellence.
the Board, as a whole and each individual member,
INITIATIVE UNDERTAKEN IN LINE WITH is assessed and evaluated regularly.
PRINCIPLES ON GOOD GOVERNANCE OF
GOVERNMENT-LINKED INVESTMENT Ensuring effective Board operations and interactions
COMPANIES
Effective Board operations and interactions require
For continuous improvement in the leadership and productive meetings. KWAP ensures quality and
performance in the Board and the Investment Panel, timeliness of all Board information in line with
KWAP has embarked on Board and Investment Panel’s good governance and best practices for well-
Effectiveness Assessment (BEA) in Q4 2022, so that their informed decision making by the Board. Trust is
respective roles are carried out efficiently and effectively. built through positive interaction, dynamics and
open communication within the Board, and with the
This is also in line with the Principles on Good Governance Management.
for Government-Linked Investment Companies (PGG)
issued by the Ministry of Finance in April 2022, which states Fulfilling the Board’s fundamental roles and
that “a board evaluation facilitated by independent experts responsibilities
is conducted once every year”.
The Board provides guidance to the Management in
The Board assumes a number of specific tasks such as developing corporate strategy, policy directions and
overseeing the proper conduct of operations, identifying setting of targets for performance management. It
main risk areas and ensuring the proper implementation upholds a strong corporate performance management
of appropriate systems to manage these risks as well as approach while exercising its oversight function. It
reviewing the adequacy and integrity of the internal control also oversees development of the company’s future
systems and the Board and Investment Panel Charter leaders and human capital to ensure continuity and
(the Charter). The Board is guided by the Charter which manages the organisational risks. The Board ensures
outlines the responsibilities and duties of the Board. its obligations to the stakeholders are met by adopting
The Charter is regularly reviewed every two years, and/or a stakeholders’ perspective when making decisions
as and when required. as well as balances valid stakeholders’ interests.