Affin Bank Berhad | Annual Report 2020

206 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL ORGANISATION EXECUTIVE SUMMARY CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION SYSTEMS OF INTERNAL CONTROLS k. Whistleblowing Policy • AFFIN Bank Group Whistleblowing Policy (Policy) encapsulates the governance and standards to promote an ethical, responsible and secure whistleblowing practice. This is in line with the requirements of BNM’s Corporate Governance Policy and the principles as prescribed in the Whistleblower Protection Act 2010. The core of the Policy is aimed to provide a proper and secured avenue for AFFIN Bank Group employee and/or member of the public who has knowledge or is aware of any improper conduct to report any suspected fraud, corruption, criminal activity or unethical conduct/behaviour by any staff of the Bank, without facing any adverse consequences, such as retaliation. • All whistleblowing cases are being reported to the Whistleblowing Committee. • The Bank and its subsidiaries (“the Group”) is wholly committed to ensure strict confidentiality and will not only protect the identity of the complainant but will also protect the complainant from any harassment and victimisation at work due to the disclosure. l. Annual Business and Capital Plan • The significant operating entities’ annual business plan and financial budget is tabled and approved at their respective Boards. • A structured framework and processes with regards to capital expenditure and revenue is in place. • The internal capital targets are being set on a yearly basis. • The variances between the actual and targeted results are presented to the Board on a periodic basis to allow for timely responses and corrective actions to be taken to mitigate risks. m. Anti-Fraud Policy • The Anti-Fraud Policy outlines the vision, principles and strategies for the Group to instil a culture of vigilance to effectively manage fraud which includes detection, escalation, remedy and deterrence of future occurrences. Robust and comprehensive tools and programmes are employed to reinforce the Policy, with clear roles and responsibilities outlined at every level of the organisation. The Bank management has zero tolerance to fraud and demands high standards of integrity in every employee. Appropriate disciplinary action is taken against employees involved in fraud, in line with the consequence management framework. . n. Human Resources • The Group acknowledges that people development is critical in ensuring that employees have the right competencies for the tasks they are entrusted with, and are able to exercise sound judgment when fulfilling those responsibilities. • HR Policies and Procedures (“HRPP”) - HRPP is in place and provide clarity for the organisation in all aspects of human resource management in the Group. - Periodically, the HRPP is reviewed to ensure policies and procedures remain relevant and appropriate controls are in place to manage operational risks. Changes, if any, are communicated to all employees via intranet.