Formulating Risk Management and Internal Control Framework for Matrix Inter Trade Sdn Bhd

Ong, Hin Ming (2026) Formulating Risk Management and Internal Control Framework for Matrix Inter Trade Sdn Bhd. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This project paper formulates an integrated Risk Management and Internal Control (RMIC) policy for Matrix Inter Trade Sdn. Bhd., a micro-SME logistics provider, to address the governance gap created by informal, person-dependent practices. The research is driven by a shifting regulatory landscape, specifically the "adequate procedures" required under Section 17A of the MACC Act and the anticipated 2026 Carbon Tax, which necessitate a transition toward codified oversight. The study explores how a small organization can maintain its operational speed while fulfilling formal accountability and sustainability requirements. The study utilizes a qualitative-dominant case study design guided by the "Research Onion" framework, adopting an interpretivist and abductive approach to bridge real-world evidence with global benchmarks. Data was collected through document analysis and semi-structured interviews with directors and operational staff, ensuring a triangulated understanding of the firm's true risk culture. These insights were analyzed using thematic coding and a 5×5 Risk Matrix to prioritize thirteen identified risks based on their likelihood and severity. The findings reveal that while most operational risks are manageable, compliance and supply chain disruptions represent "extreme" exposures that could lead to serious legal penalties or financial strain. Consequently, the proposed RMIC policy introduces structured role definitions, monthly risk review mechanisms, and a unique dual-checklist system that separates operational execution from compliance verification. This proportionate framework demonstrates that effective corporate governance in micro-SMEs is achieved by embedding oversight directly into daily workflows, providing a scalable model for organizational resilience and regulatory readiness.