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Statement on Internal Control3.3 Regulatory and Compliance• Group Regulatory Affairs (GRA)Under the Group Regulatory Policy, theGroup shall comply with all applicable lawsand regulations, regulatory obligations andgovernmental policies in the jurisdictions inwhich it operates and ensure that it isproperly protected from potential regulatoryliabilities and that regulatory advice isobtained in an efficient and cost effectivemanner as and when required.GRA has also been established to create amore efficient and effective workingrelationship between Regulatory Affairsfunction with respect to regulatory issueswithin the Group. GRA is also kept informedand updated of all relevant regulatorymatters of subsidiaries via a definedmanagement communication process. Thisenables coordination, monitoring andmanaging a consistent approach inaddressing regulatory issues affecting orlikely to affect the interests of the Group forthe purpose of achieving optimal regulatoryoutcomes for the Group.4.0 INFORMATION AND COMMUNICATIONInformation and communication support all othercontrol components by communicating controlresponsibilities to employees and by providinginformation in a form and time frame that allowspeople to carry out their duties. The key activitieswithin the Group are as follows:4.1 Corporate Communication PolicyThere is a Corporate Communication Policy inplace to ensure that communications across theGroup and to investors are effectively managedand meets the diverse needs of theorganisation.The Board recognises the need for a robustreporting framework given the growth of theGroup’s international investments and areworking towards further strengthening thatelement of the internal control system.4.2 Business Control Incident (BCI) ReportingThe Group also has in place BCI Reportingaimed at capturing and disseminating thelessons learnt from the internal control incidentswith the objective of preventing similar incidentsfrom occurring in other OpCos within the Groupand to enable monitoring of internal controlincidents that have caused significant loss.Three such incident reportings were sharedwith all subsidiaries in 2009.5.0 MONITORINGMonitoring covers the oversight of internal controlsby management or other parties outside the processor the application of independent methodologies,like customised procedures or standard checklists,by employees within a process. Key monitoringactivities within the Group are as follows:5.1 On-going Monitoring• Internal Audit Division (IAD)IAD is independent and reports functionallyto the BAC and administratively to thePresident & GCEO. IAD provides independent,objective assurance and consulting servicesdesigned to add value and improve theGroup’s operations. It helps the Groupaccomplish its business objectives bybringing a systematic, disciplined approachto evaluate and improve the effectivenessof risk management, control and governanceprocesses. Its work practices are governedby the IA Charter.Annual Report 2009 • 085