ENRICHING LIVES EXPANDING HORIZONS - Maxis

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236 Corporate Governance RISK MANAGEMENT ENTERPRISE RISK MANAGEMENT The Board is pleased to share the activities of Maxis Enterprise Risk Management in relation to the Group in respect of the financial year ended 31 December 2011. The Maxis Group operates in a highly competitive and technology-based environment. The major risks to which the Group is exposed are strategic, operational, regulatory, financial, market, technological, products and reputational risks. These risks are proactively reviewed, monitored and managed by Maxis through the Enterprise Risk Management (ERM) process. Maxis Enterprise Risk Management adopts a structured and integrated approach in managing key business risks in line with the risk management framework and best practices. This framework is consistent with the Committee of Sponsoring Organisations (COSO) Enterprise Risk Management framework and involves the systematic identification and analysis of risks which impact the organisation’s objectives, formulation of response strategies and monitoring and reporting of the risk management progress on a regular basis. The implementation of the enterprise risk management framework ensures that major areas of risks are identified, managed and controlled or mitigated effectively. OBJECTIVE CONTROL RISKS ALIGNMENT IDENTIFY & ANALYSE RESPOND MONITOR & REPORT MAXIS’ ENTERPRISE RISK MANAGEMENT FRAMEWORK The ERM process is based on the following principles: • Consider and manage risks enterprise-wide; • Integrate risk management into business activities; • Manage risks in accordance with the Risk Management framework; • Tailor responses to business circumstances; and • Communicate risks and responses to Management. Risk management is firmly embedded within the business units through the annual strategic and budgeting processes. The business units, being the first line of defense against risks, are responsible for identifying, mitigating and managing risks within their respective areas. These units are to ensure that their day-to-day business activities are carried out within the established risk policies, procedures and limits.
MAXIS BERHAD ANNUAL REPORT 2011 237 All risks identified are assessed to determine the risk ranking and displayed on a 5 by 5 risk matrix. With this visual representation, the business owners and Senior Management team can prioritise their efforts and manage the different classes of risks appropriately. Integrated within the ERM framework, Maxis has an automated risk management system, consisting of the Corporate Risk Scorecard, Corporate Digital Assurance and Consolidator and Scoring modules, for identifying, controlling, monitoring and reporting of risk exposure. These provide a comprehensive view of enterprise risks of Maxis on a single common platform. The Board of Directors is ultimately responsible for identifying principal risks and ensuring the implementation of appropriate systems to manage these risks. The oversight of this critical area is carried out through the Audit Committee and reported to the Board at semi-annual meetings. The ongoing effectiveness of the risk management framework is confirmed by Internal Audit through annual audit and review procedures. There is a dedicated independent Enterprise Risk Management department responsible for managing the risk management process in the Group. The following activities were carried out by the department, amongst others, in the discharge of its duties and responsibilities as set out in the charter: • Steered the Group’s Risk Management programme and ensured timely updates of risk profiles by the respective business units; • Provided reports to the Audit Committee on the consolidated risks faced by the respective business units and action plans to mitigate such risks; • Presented a summary of key risks to the Audit Committee; • Conducted risk awareness and review sessions with relevant heads of departments/risk owners to promote a proactive risk management culture and tracked risk implementation issues; • Provided assistance to key business units to ensure risk management is firmly embedded as a process and that all key risks are identified and appropriate mitigating actions and controls are in place; • Analysed risk assessment reports from all business units and conducted presentations at the Senior Leadership Team meeting (chaired by the CEO or CFO in the CEO’s absence), for deliberation of risks that impact the annual operating plans and objectives by Senior Management; • Monitored the results of the Enterprise Risk Management department’s key performance indicators; and • Provided relevant information on risk management to all Maxis staff through the internal website. RISK RATING SCALE - 5 BY 5 MATRIX Impact 1. CATASTROPHIC 2. MAJOR 3. MODERATE 4. MINOR 5. INSIGNIFICANT HIGH Likelihood of occurence 1. UNLIKELY 2. LOW PROBABILITY 3. POSSIBLE 4. HIGH PROBABILITY 5. ALMOST CERTAIN MEDIUM LOW
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ENRICHING LIVES EXPANDING HORIZONS
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CONTENTS Introduction 2 Our Company
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MAXIS BERHAD ANNUAL REPORT 2011 3 I
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MAXIS BERHAD ANNUAL REPORT 2011 5 C
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MAXIS BERHAD ANNUAL REPORT 2011 7 I
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MAXIS BERHAD ANNUAL REPORT 2011 9 2
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Maxis Berhad Annual Report 2011 77
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• ALIGNED TO CORPORATE STRATEGY A
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100 Financial Statements DIRECTORS
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106 Financial Statements INCOME STA
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108 Financial Statements STATEMENTS
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116 Financial Statements NOTES TO T
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Page 188 and 189: 186 Financial Statements NOTES TO T
Page 200 and 201: 198 Financial Statements STATEMENT
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Page 204 and 205: 202 SMALL SHOP, BIG DREAMS In busin
Page 206 and 207: 204 Corporate Governance AUDIT COMM
Page 214 and 215: 212 Corporate Governance STATEMENT
Page 230 and 231: 228 OUT OF TOWN NEVER OUT OF TOUCH
Page 232 and 233: 230 Corporate Governance INTERNAL C
Page 240 and 241: 238 Corporate Governance RISK MANAG
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Page 244 and 245: 242 Analysis of Shareholdings DISTR
Page 246 and 247: 244 Analysis of Shareholdings 30 LA
Page 248 and 249: 246 Analysis of Shareholdings INFOR
Page 250 and 251: 248 Other Information LIST OF PROPE
Page 252 and 253: 250 Other Information DISCLOSURE OF
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286 Other Information GLOSSARY 2G S
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288 Other Information GLOSSARY Cont
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290 MAXIS EXCLUSIVE PARTNERS CENTRA
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292 Other Information MAXIS EXCLUSI
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302 Annual General Meeting NOTICE O
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NOTES
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fold here STAMP Maxis Berhad (86757
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fold here STAMP Maxis Berhad (86757
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ENRICHING LIVES EXPANDING HORIZONS - Maxis

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