2012 Annual Report - Media Prima Berhad

Media Prima Berhad
Statement on
Risk Management and Internal Control
Management Committees
• Management Committees have been established
to ensure that the Group’s interests are adequately
protected in arriving at important business/
operational decisions. The committees include the
Programme Committee, Newsprint Committee,
Group Risk Management & Audit Committee,
Procurement Committee, Tender Committee, ICT
Steering Committee, Donation Committee,
Integration Committee, Project Serumah
Committee and Recovery Executive Committee
with clearly defined terms of reference.
Senior Management Meeting
• Senior Management meetings are held on a
monthly basis to formulate strategies on an ongoing
basis and to address issues arising from
changes in both the external business environment
and internal operating conditions.
Business Plan and Budget
• Annual business plans and budgets are prepared
by the Company’s business units, and are
reviewed and approved by the Board. The
performance of each business unit is assessed
against the approved budget, with explanation on
significant variances provided to the Board on a
periodic basis.
Documented Policies and Procedures
• Policies and procedures of business processes are
documented and set out in a series of Standard
Operating Manuals and implemented throughout
the Group. These policies and procedures are
subject to regular reviews, updates and continuous
improvements to reflect the changing risks and
operational needs.
• Policies and procedures developed and enforced
during the year are Crisis Management Plan,
Public Service Announcement & Advertorial and
Guideline on Usage of Engineering Equipment. All
the documented policies and procedures can be
accessed via the Company’s intranet at
http://peopleconnect.mediaprima.com.my.
Human Resource Policy
• The Group has in place, a comprehensive Human
Resources Policy approved by the Board that set
the tone of control consciousness and employee
conduct. There is also in place, supporting
procedures for the reporting and resolution of
actions contravening these policies.
• There are proper guidelines within the Group
regarding employment and dismissal, formal
training programmes as well as other relevant
procedures in place to ensure that staff are
competent and adequately guided in carrying out
their responsibilities.
• The Group has also in place a Performance
Management System, which is linked to and
guided by Key Performance Indicators (KPI)
and accountability.
Limit of Authority
• The Limit of Authority (LOA) for the Group has
been structured to define all the common matters
pertaining to operations such as policy approval,
awarding of projects and capital and operational
expenditures. It serves as a control whereby a
cross-check system has been incorporated to
minimise any abuse of authority.
• The system provides that approvals granted
should be supported by a recommendation from
the subordinates and notified to the superior of
the approving authority particularly pertaining to
material transactions.
• The highest approving authority is the Board of
Directors where the transactions will determine
the direction and financial position of the Group
and are above the limit that has been granted to
the Group Managing Director.
• A separate LOA for each subsidiary company has
been prepared in order to ensure adequate
management control and smooth operations at
subsidiary level. All Heads of subsidiary shall
always be governed by the authority limits
accorded to them in the LOA for the respective
subsidiaries. The LOA are regularly reviewed and
updated to reflect changing conditions.
124
annual
report
2012