The Group Internal Audit Department (“GIAD”), under the direction of the Group’s Board Audit and Risk Management Committee (“BARMC”), provides the HLAM’s Board Of Directors the assurance it requires regarding the adequacy and integrity of the system of internal controls.

The GIAD undertakes periodic and systematic reviews of internal control systems and the review of compliance with the business objectives, policies, reporting standards and control procedures of HLAM. This is to provide reasonable assurance to the Board on the proper functioning of the system of internal controls.

The risk management function is outsourced to Hong Leong Investment Bank Berhad's (HLIB) Risk Management Division. HLIB which is a wholly-owned subsidiary of Hong Leong Capital Berhad consists of two main pillars, namely the Investment Banking Division and the Stockbroking Division.

Core activities for the investment banking division include debt and equity funding raising services, private debt securities (PDS) issuances, syndicated loans, initial public offerings (IPO), rights issues, restricted issues, special issues and private placements, corporate restructuring, merger & acquisitions, asset and investment valuation, takeovers & privatisations, independent advisory works, debt and equity underwriting, fixed deposits, trading and distribution of fixed income instruments. As for the stockbroking division, its core activities include the offering of retail and institutional stockbroking services, equity research, margin financing, nominees and custody services and futures & options broking services.

The role and duties of the outsourced Risk Management function is one of independent nature as part of the HLAM’s Senior Management’s strategy in implementing risk management policies as approved by the Board. 

The scope of the approved independent risk management function outsourced to Group Risk is confined to Operational Risk Management; governed in accordance to the Group's Operational Risk Management Framework.