Download - Axiata Group Berhad - Investor Relations

A process was introduced in 2009 toidentify the corporate talent pool within theorganisation and to manage the developmentof the potential talent. A Corporate Policy isalso in place to ensure that the President &GCEO and top management successionplanning is in place.2.0 RISK ASSESSMENTRisk assessment involves the identification andanalysis by management of risk relevant to theachievement of predetermined objectives, forming abasis for determining how the risks should bemanaged. Key activities involved are as follows:2.1 Company-wide Objectives• Achievement of Goals and ObjectivesThe Board is responsible for setting thebusiness direction including a clear Groupvision, mission and strategic direction, whichis communicated to employees at all levels.The Board also oversees the conduct of theGroup’s operations through variousmanagement reporting mechanisms. Throughthese mechanisms, the Board is informed ofall major issues pertaining to internal control,regulatory compliance and risk taking.2.2 Risk Identification and Analysis• Group Risk Management FrameworkIn line with the Malaysian Code on CorporateGovernance, and as part of the Group’splans to further enhance the Group’s systemof internal control, the Group established in2009 a risk management function thatoversees the Group’s risk managementframework, monitors of the Group’s riskprofile, monitors the implementation of riskmitigating action plans and reviews andassesses the applicability of the controlenvironment in mitigating risk.Group Risk Management provides quarterlyconsolidated Group risk profile and mitigatingaction plans to the BAC which will then bepresented to the Board.Group Internal Audit undertakes independentreviews to ensure compliance of the GroupPolicies and to assess the effectiveness ofpolicy implementation.In 2010, Axiata established a separate RiskManagement Committee comprising all itsSenior Management. This committee, chairedby the Chairman of the BAC, was establishedwith the objective of having a focuseddiscussion on the Group’s risks.• Control Self Assessment (CSA)CSA is an effective tool used by the Groupfor improving the business’ internal controlsand business processes. It allows employeesof the Group to identify the risks involved inachieving the business objectives, toevaluate adequacy and effectiveness of thecontrols in place and activities designed tomanage those risks.2.3 Managing Change• Constantly Changing Business EnvironmentRisk management initiatives within the Groupis strengthened continuously to ensure thatthe Group is able to respond effectively tothe constantly changing business environmentand thus able to protect and enhancestakeholders’ value.3.0 CONTROL ACTIVITIESControl activities are the policies, procedures andpractices that ensure management objectives areachieved and risk mitigation strategies are carriedout. Key activities within the Group are as follows:3.1 Policies and Procedures• Financial and Operational Policies andProceduresThere are documented procedures in placethat cover management accounting, financialreporting, procurement, information systemssecurity, compliance and other riskmanagement issues.Annual Report 2009 • 083