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ENRICHING tHE FUtURE ENRICHING NAtIoNAL PRoGRESS ENRICHING StAKEHoLDER VALUE ENRICHING SUStAINABLE IMPACt

StAtEMENt ON RISK MANAGEMENt

AND INtERNAL CONtROL (CONtINuED)

The Compliance Section serves as an independent Compliance Process
function that identifies, assesses, advises on, monitors Compliance activities are closely intertwined with
and reports on compliance risk. Compliance risk is compliance developments on the global front, existing
defined as the risk of legal or regulatory sanction, legal requirements as well as KWAP’s policies and
financial loss, or loss to reputation that the organisation procedures. The following diagram illustrates the
may suffer as a result of its failure to comply with all compliance process and general approach taken in
applicable laws, regulations, codes of conduct and managing the compliance risk.
standards or good practice.

The main objective of compliance is to preserve
KWAP’s reputation so that our competitive standing
and reputation are not only maintained, but also Identification
enhanced. Providing the foundation to this aspiration
is the Compliance Framework which was implemented
in 2010 and further revised in 2022; from which the
building blocks of the compliance functions are shaped.
Compliance is a core pillar of the three lines of defence Validation Asessment
model alluded to earlier.
Scope of Compliance
a) Regulatory Compliance
This covers the external regulations and guidelines Monitoring
which KWAP is bound to comply with such as the and Reporting Attestation
relevant Acts of Parliament, Minister of Finance’s
Decrees, regulations issued by Bank Negara
Malaysia, Securities Commission, Bursa Malaysia
and other regulatory bodies. The regulatory Identifying the relevant regulations
requirements will be embedded into the internal Identification and internal requirements that
processes and practices to ensure adherence to the business units need to comply with.
regulations.
Assessing the relevant regulations
b) Internal Compliance Assessment and internal requirements to ensure
compliance by business units.
This covers compliance with the Frameworks,
Policies, guidelines and Standard Operating Semi-annual or/and annual of
Procedures established by KWAP. Ownership of periodic attestation via Self
internal compliance lies with the Business Units Attestation Compliance Checklist and declare
as the first line of defense, any potential non- any incident of non-compliance
compliance should be identified upfront before the during the reporting period.
event, addressed and highlighted to Compliance Monitoring Monitor the controls and process.
Section. This will be escalated as per good corporate and Report any non-compliance
governance standards. Reporting incident to Management.
Perform periodic compliance review
to assess the veracity of approved
Validation
Self-Compliance Checklist via
sample checks.

124 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INtEGRAtED REPoRt 2023