INTERNAL CONTROL AND RISK MANAGEMENT Internal Control The Board of Directors of the Company emphasizes on the importance of effective and efficient management in order to achieve the operational goals and minimize losses caused by fluctuating circumstances. It is also ensured that the operation of the Company is efficient and in accordance with the goal, objectives and related laws and regulations. Anti-corruption policy is established and communicated to staff at all level for acknowledgement and strict compliance with the policy. The audit and report of audit results to the Board of Directors are regularly conducted. The Board of Directors has assessed the internal control system based on the report on the result of the assessment of the Audit Committee using the assessment form on the adequacy of the internal control system of the Securities and Exchange Commission of Thailand and Stock Exchange of Thailand which is in line with internal control international standard of The Committee of Sponsoring Organizations of the Treadway Commission (COSO). Five aspects with 17 subtopics of the internal control system of the Company are assessed as follows: 1. Control Environment - The Company has effectively adjusted its organizational structure to be in correspondence with situation. The chain of command, approval authority and designation of responsibilities for the balance of power are established under the supervision of the Board of Director. - Internal control activities that sufficiently and appropriately cover all activities are established and the operations are regularly examined to ensure that they are in compliance with related laws and regulations. - The Code of Conduct is in writing and communicated to every level of staff so they can strictly comply with. - The Board of Directors is independent from the Management and has the responsibility to oversee and audit internal control system in order for the organization to efficiently and effectively achieve its business goals. - The anti-corruption policy of the Company is established together with clear and concrete channels for receiving complaints and information about wrongdoings and corruptions. - The Company demonstrates commitment in personnel development. LPN Academy plays an important role in identifying capacity development plan for staff to promote the Company as a learning organization and to respond to future business expansion and move toward sustainability. 2. Risk Assessment - Vision, mission and objectives of the Company are clearly established in the business plan. The internal and external risks are assessed and analyzed. The Risk Management Committee is established to efficiently manage risks to be at acceptable level. 3. Control Activities - The organization prepares an operational manual for all departments to identify control points and to be used as a reference. The Executive Committee is responsible for ensuring compliance with the policy of the Company. - Scope of authority, approval limit, financial transactions process, purchasing process and others are clearly established in written format in order to control the Company’s assets and control connected transaction or conflict of interest transaction. - The Internal Audit Department has implemented the monitoring system for the process with a risk of corruption. Related operational systems are also improved. - The Whistleblower Policy is established to protect the informant who exposes wrongdoings that violate the Code of Conduct, rules and regulations of the Company or incidents of corruption.
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ANNUAL REPORT 2019 THE BETTER BALANCE
