The Board is responsible and accountable for maintaining and ensuring a sound system of risk management and
internal control practices to safeguard shareholders’ investments, stakeholders’ interest as well as the Group’s assets.
Such systems cover not only financial controls but also operational and compliance controls.
The Board has an on-going process in place for identifying, evaluating, monitoring and managing significant risks that
may affect the achievement of the Group’s business objectives. The Board is assisted by the Group Risk Management
Committee (GRMC), consisting of all members of Axiata Group Senior Leadership Team (SLT), in ensuring that the
implementation of the approved policies, manuals and procedures on risks and controls are in place to mitigate key
risk areas which have been identified and assessed by the risk owners.
The Axiata Enterprise Risk Management (ERM) Framework, benchmarked against ISO31000:2009
3
is used as a
standardised approach in identifying, assessing, reporting and monitoring risks. To ensure consistency, the framework
is adopted by all risk management teams across all OpCos.
Risk assessment involves the identification and analysis of the key risks based on certain criteria which takes into
account its effect and likelihood. Appropriate mitigation strategies are then developed, taking into consideration the
effectiveness of existing controls.
The following are the key risk areas for the Axiata Group:
Sustainability of Long-Term Business Strategy
Adverse Regulatory Developments
Competitive Risk
Changes in Customer Behaviour
Obsolescence of Existing Technology Over Time
Treasury and Funding Risks
Systems and Network Failure
Leadership Competency Gaps and Loss of Key Personnel
Management of Large Scale Regional Projects
Risks Related to Our Investments
The Axiata Group’s enterprise risk management process is depicted in the next page.
Risk
Management
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axiata
group berhad
sustainability report
2014
016 017
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