14 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROLDigi Berhadcom 2018 Annual

14 statement on risk management and internal

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14 “STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.067, accessed April 24, 2019, - _Annual_Report_2018.pdf 15 “Notes to Financial Statements”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.137, accessed April 24, 2019, 16 “Notes to Financial Statements”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.138-139, accessed April 24, 2019, 17 “Notes to Financial Statements”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.138-139, accessed April 24, 2019,
2.3 Credit Risk Counterparty that failed in fulfilling the payment of obligations may trigger or arise in the possibility of non-payment debt is to be known as credit risk. In general, Digi.Com Berhad will faced the components of credit risk on normal business operation such as cash, trade, short-term deposits and other receivables 18 . The policies that has been formalized can mitigate the credit risk of this company, that focusing on 3 components such as the assessment and approval of risk, credit limits and monitoring process. The permission of deposits placed entered with only permitted if reliable licensed bank and unit trust funds incurred. Highest credit risk in regard of trade receivables is prohibited to already carrying amount of trade receivables soon when the impairment allowance is deducted 19 . 2.4 Liquidity Risk Due to shortfall of funds, this risk is considered as the risk of the corporate that will not achieve the financial obligations of short terms. With the purpose of working capital and minimization of the fluctuations impacts in cash flow, the cash equivalent is considered to be sufficient by the management as the status of cash is maintained and monitored by this company. As a result, the investment of this company is liquid high in term of cash management funds 20 . The payables are either below the 12 months or on-demand was stated in the reporting date of Digi.Com Berhad. Therefore, the short term in non-hedging derivatives liabilities can be described as the trade in nature and other payables 21 . 3.0 Cost of Capital 3.1 CAPM (Capital Asset Pricing Model) 18 “Notes to Financial Statements”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.137, accessed April 24, 2019, 19 “Notes to Financial Statements”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.137, accessed April 24, 2019, 20 “Notes to Financial Statements”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.139-140, accessed April 24, 2019, 21 “Notes to Financial Statements”,Digi Berhad.com 2018 ,Annual Report. Dec 31, 2018 p.139-140, accessed April 24, 2019,

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