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Beyond Short-
Term Profits
Nurturing People
Process Excellence
& Governance
Planet & Society
Our Associates
INTRODUCTION
Axiata Group Berhad | Sustainability & National Contribution Report 2016
17
INTRODUCTION
National
Contribution Report
RISK
MANAGEMENT
Principally, the Group’s key risk factors are categorised into the following 11 areas:
Risk Category
Mitigation
Financial Risk
The Axiata Treasury Management Centre has been tasked to oversee and control the Group’s treasury and
funding matters, by developing hedging strategies which are governed strictly by the treasury policies, taking
into consideration current and future outlook of the relevant economies and foreign exchange markets with
the ultimate objective of preserving the Group’s profitability and sustainability.
Market Risk
The Group takes necessary measures to drive efficiencies and innovations through investments in new
technologies, establishing strategic ties with “Over-the-Top” (OTT) or other digital product developers in order
to create products and services that meet evolving customer needs, increase the Group’s share of customers’
wallets and rebuild customer loyalty.
Regulatory Risk
The Group advocates strict compliance, transparency and putting our case before the relevant authorities. The
Group has also been at the forefront in engaging regulatory officials, participating in government consultations
and sharing knowledge and best practices in the development of healthy regimes for the telecoms sector.
Underpinning the Group Regulatory Policy is the understanding that the Group shall comply with all applicable
laws and regulations, regulatory obligations and governmental policies in the jurisdictions in which it operates,
and that regulatory advice should be obtained in an efficient and cost effective manner as and when required.
Cyber Risk
The Group has established a Cyber Security Steering Committee focused on the accelerated implementation of
security initiatives. The committee is at the forefront of safeguarding the Group by ensuring strict compliance
with security policies, procedures and putting in place technologies and tools to minimise the risk of security
breaches.
Operational Risk
The Group continuously addresses issues such as network congestions, dropped calls, upgrades to network
coverage, etc. to ensure better quality network and service delivery. As at the end of 2016, the Group has
completed the implementation of its Business Continuity Management (BCM) Framework for selected OpCos
including the Axiata Corporate Centre.
Geopolitical Risk
The Group works closely with the respective OpCo Management, leveraging on local expertise, knowledge
and ability to continually assess the political situation and have in place various measures to ensure a timely
response in the event of geopolitical-related events.
Strategic Risk
The Group closely monitors the competitive landscape, explores and makes appropriate investments to
upgrade its technology and platform and reviews the relevance of its products and services. Prudent cost
management keeps our budget lean while maintaining strong strategic alliances with network vendors helps
us to keep pace with technology shifts.
Investment Risk
We have put in place a Mergers and Acquisitions Committee that oversees all acquisitions and divestments,
and at the same time maintain a robust due diligence process to evaluate and manage the potential risks
involved. Post-acquisition, transition teams are put together to ensure that organisational, cultural and mind-
set changes that are required are implemented appropriately.
People Risk
We develop our people through robust talent development programmes, attractive performance-based
rewards and by providing a safe and healthy work environment. Employee engagement is also critical for the
Group.
Technology Risk
The Group constantly reviews and refreshes its technology while maintaining financial prudence. The Group has
recently reviewed and revamped its capital expenditure (capex) governance and business planning process,
focusing on prudent cost management and capex productivity.
Governance and
Integrity Risk
The Group’s Code of Conduct sets out rules and guidelines on how personnel acting for or on behalf of
the Group are expected to conduct business. The Group will continue its focus on maintaining and further
developing its strong ethical platform and corporate governance standard to support Axiata’s business
integrity and strong performance.