2012 Annual Report - Media Prima Berhad

Media Prima Berhad
Statement on
Risk Management and Internal Control
Risk Management Committee
• The Board has also delegated the responsibility of reviewing the risk management systems and to ensure
the effectiveness of the Group’s Risk Management Framework to the Risk Management Committee (RMC).
The RMC updates the Board on the significant changes that affect the risk profile of the Group. Further
details of the activities undertaken by the RMC during the year are set out in the Risk Management
Committee Report on pages 135 to 137.
Risk Management Process
Establish the
context
Identify
risks
Communicate
and
consult
Analyse
risks
Monitor
and
review
Evaluate
risks
Treat
risks
122
annual
report
2012
• The risk management process in place requires
Management to comprehensively identify and
assess all types of risks in terms of likelihood and
magnitude of impact as well as to identify and
evaluate the adequacy of mechanisms in place to
manage, mitigate, avoid or transfer these risks.
• The process encompasses assessments and
evaluations at business unit process level before
being examined on a Group perspective.
• Group Risk Management Department (GRM) had
conducted several discussions with Senior
Management to further enhance the risk criteria
for the respective subsidiaries. These
communication sessions are also conducted to
ensure that the interest of stakeholders are
acknowledged and considered when defining the
risk criteria in evaluating risk.
• Another key area in the risk management process
is establishing the context whereby the objectives,
scope and activities of the organisation is clearly
defined and this is done by active engagement
with the relevant stakeholders.
• Due to the uncertainty inherent in any business
and by identifying and analysing a range of risk,
risk owners are better able to implement controls
and treatments to mitigate the likelihood and
consequence of the uncertainty.