MDP Plastics Sdn.Bhd.: Risk Management and Internal Control Policy

Ng, Tania Vui Che (2026) MDP Plastics Sdn.Bhd.: Risk Management and Internal Control Policy. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

Text 01 Tania Ng Vui Che (MCG).pdf Restricted to Registered users only Download (3MB)

Abstract

This study develops and evaluates a risk management and internal control policy for MDP Plastics Sdn. Bhd., a Malaysian manufacturing Small Medium Enterprise (SME) operating in an increasingly volatile risk environment characterised by regulatory, supply chain, geopolitical, and technology-driven uncertainties. Grounded in corporate governance expectations in Malaysia, the project examines how risk management and internal audit can be strengthened beyond procedural compliance to function as enterprise-wide governance mechanisms. Using a qualitative case-study design, data were derived from semi-structured interviews, document analysis which include risk and opportunity forms, audit plans, schedules, checklists, and reports, and stakeholder engagement. ISO 31000:2018 and ISO 19011:2018 were applied as analytical anchors, supplemented by the IIA Three Lines Model and benchmarking against the Malaysian Code on Corporate Governance (MCCG) and relevant Bursa Malaysia Listing Requirements (BMLR). Findings indicate that MDP Plastics Sdn. Bhd. has foundational documentation and ISO 9001-aligned practices; however, risk activities remain fragmented and department-centric, risk ownership and strategic linkage are insufficiently formalised, monitoring is largely reactive with limited use of forward-looking indicators, and internal audits are predominantly checklist-driven with constrained analytical depth and independence safeguards. The study proposes an objective-led Enterprise Risk Management (ERM) flow with clearer accountability and escalation, alongside a risk-based internal audit programme structured around Plan–Do–Check–Act (PDCA), improved evidence-gathering, and explicit reporting of opportunities for improvement. These enhancements are expected to strengthen governance maturity, assurance credibility, decision usefulness, and stakeholder confidence, while supporting longer-term listing readiness.