Top’ (OTT) providers, network security, digital services
regulations, universal service obligations and periodic review
of legal and regulatory frameworks.
4.0 Information and Communications
Information and communications support all other control components
by communicating control responsibilities to employees and by
providing information in a form and time frame that allows employees
to carry out their duties. The key activities within the Group are as
follows:
4.1 Corporate Communication Policy
There is a Corporate Communications Policy in place to ensure
that communication across the Group and to investors inside
and outside of Malaysia are effectively managed and meets the
diverse needs of the organisation.
The Board recognises the need for a robust reporting framework
given the growth of the Group’s international investments and
are working towards further strengthening that element of the
internal control system. The Board also recognises the need for
more dialogue with investors and analysts as well as with the
media moving forward. Details of investor relations activities are
listed within the Statement on Corporate Governance section of
this Annual Report.
4.2 Business Control Incident (BCI) Reporting
The Group has in place BCI Reporting aimed at capturing and
disseminating the lessons learnt from internal control incidents
with the objective of preventing similar incidents from occurring
in other OpCos within the Group and to enable monitoring of
internal control incidents that have caused significant losses. Five
such incident reporting were shared with all OpCos in 2015.
5.0 Monitoring
Monitoring covers the oversight of internal control by management or
other parties outside the process or the application of independent
methodologies, such as customised procedures or standard checklists,
by employees within a process. Key monitoring activities within the
Group are as follows:
5.1 Performance Reporting
•
SLT Meetings
The SLT meets monthly and as and when required to
deliberate on business performance, financial and operating
risks and issues which include reviewing, resolving and
approving all key business strategic measures and policies.
Progress, exceptions and variations are also fully discussed
and appropriate action taken. In 2015, there were 12 SLT
meetings held at Group level. Similar meetings were held
regularly at OpCo level.
Significant matters identified during these meetings
are highlighted on a timely basis to the Board, which
is responsible for setting the business direction and for
overseeing the conduct of the Group’s operations. Through
these mechanisms, the Board is informed of all major control
issues pertaining to internal control, regulatory compliance
and risk taking. This ensures that business objectives stay on
course.
•
Major Control Issues
Quarterly reports on financial and operational control issues
form part of the initiative to the Group.
•
Headline Performance KPIs
Headline Performance KPIs have been set and agreed
upon by the Board as part of the broader KPI framework
that the Group has in place, as prescribed under the GLCT
programme.
The headline KPIs represent the main corporate performance
measurement targets for the year and are announced
publicly as a transparent performance management
practice.
5.2 Ongoing Monitoring
•
Financial and Operational Review
Quarterly financial statements and the Group’s performance
are reviewed by the BAC, which subsequently recommends
them to the Board for their consideration and approval.
Monthly management accounts containing key financial
results, operational performance indicators and budget
comparisons are also presented to the SLT to enable them
to have regular and updated information of the Group’s
performance.
•
Internal Audit (IA)
The function of IA is highlighted within the BAC Report
section of this Annual Report.
APPENDIX 1 - Key Risks Faced by the Group
1.
Technology Risk
As the telecommunications industry continues to evolve beyond
traditional services, the Group strives to be at the forefront in
both technology and innovation in all our operating regions. Rapid
technological advances may result in premature obsolescence of key
technology and equipment before the end of their expected useful
life. At the same time, the Group recognises the risk of lagging in the
development and deployment of new technologies and its related
ecosystems. Such lags may result in additional capital expenditure in
technologies in order to expedite deployment of new infrastructure to
remain competitive in the respective markets. Alongside our OpCos,
the Group has taken steps to constantly assess the development of
these new technology ecosystems and the readiness of the required
components to ensure we continue to deliver innovative and relevant
services to our customers.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
axiata group berhad | annual report 2015
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