100 / 284
Axiata Group Berhad | Annual Report 2016
GOVERNANCE
098
(c) BAC
The primary function of the BAC is to assist the Board in
fulfilling its statutory and fiduciary responsibilities. The BAC
will review the financial statements and financial reporting
process, the system of internal controls, management
of enterprise risk, the audit process and the process for
monitoring compliance with law and regulations including
Bursa Securities requirements and the company’s Code of
Conduct.
It has direct access to the internal and external auditors and
full discretion to invite any Director to attend its meetings.
Further details of the BAC are stated under the BAC Report
section of this Annual Report.
In 2016, the Cyber Security Steering Committee (“CSSC”)
was established as a sub-committee of the BAC focusing on
the accelerated implementation of cybersecurity initiatives,
for example, the establishment of the Cyber Security
Operation Centre (“CSOC”) and Cyber Security Posture
Assessment in the Group and ensuring a standardised and
aligned implementation across the Group.
(d) BNC
Please refer to the Statement on Corporate Governance
section of this Annual Report.
(e) BRC
Please refer to the Statement on Corporate Governance
section of this Annual Report.
1.3 Senior Leadership Team (SLT)
The SLT is committed to the identification, monitoring and
management of risks associated with its business activities. The
GCEO andManagement are ultimately responsible to the Board for
the Group’s system of internal control and risk management. Each
business unit is responsible and accountable for implementing
procedures and controls to manage risks within its business.
1.4 Organisation Structure
•
Clear Organisation Structure
The Group has an appropriate organisational structure
led by functional SLT members who have clear roles of
responsibility and lines of reporting. The proper segregation
of duties promotes ownership and accountability for risk
taking and defines lines of accountability and delegated
authority for planning, executing, controlling and monitoring
of business operations. Competent and professional
individuals have been selected as part of our SLT to ensure
we manage our business well and to deliver business results.
Regular reviews of the organisational structure are held to
address the changes in the business environment as well
as to keep abreast of current and future trending of new
technologies, products and services.
•
Corporate Centre
The Corporate Centre plays an advisory role to add value
to the subsidiaries at varying engagement levels. The broad
roles of the Corporate Centre are as follows:
1.
Supporting role to Axiata Board Representatives at
OpCos and OpCos’ management; and
2.
Supporting role to OpCos’ Functional Heads.
Besides engaging in regular communication between the
OpCos and the Group functions, the Corporate Centre
also gives appropriate inputs and steers the Group on best
practices through sharing of the Group’s guidelines and
strategies to minimise risk exposure and to increase the
efficiency and effectiveness of business operations.
The Corporate Centre is also responsible for key processes
and functions including strategic planning, mergers and
acquisitions, joint development projects, capital raising and
allocation, leadership, talent development, group accounts
and reporting, procurement, treasury, technology including
cybersecurity and network.
The Corporate Centre is also involved in leading Group
initiatives to address current and future challenges of the
Group.
1.5 Assignment of Authority and Responsibility
•
Policies and Procedures
Documented policies and procedures are now in place for
all major aspects of the Group’s business and these are
regularly reviewed and updated to ensure that they remain
effective and continue to support the organisation’s business
activities at all times as the organisation continues to grow.
These policies and procedures are supported by clearly
defined delegation of authorities for amongst others,
spending on operating and capital expenditures, authority
to enter into contracts and commitments, business plans and
budget, and procurement of goods and services.
•
Limits of Authority (LoA)
The Board has approved a clearly defined and documented
LoA which is to be used consistently throughout the Group.
These are regularly updated to reflect changing risks or
to resolve operational deficiencies. It establishes a sound
framework of authority and accountability within the Group,
including segregation of duties which facilitates timely,
effective and quality decision making at the appropriate
levels in the Group’s hierarchy.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL