Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Axiata Group Berhad (242188-H) Annual Report 2012with the media moving forward. Details ofinvestor relations activities are listed within theStatement on Corporate Governance section ofthis Annual Report.4.2 Business Control Incident (BCI) Reporting5.0 MonitoringThe Group has in place BCI Reporting aimed atcapturing and disseminating the lessons learntfrom the internal control incidents with theobjective of preventing similar incidents fromoccurring in other OpCos within the Group andto enable monitoring of internal control incidentsthat have caused significant losses. 10 suchincident reportings were shared with allsubsidiaries in 2012.Monitoring covers the oversight of internal controlsby management or other parties outside the processor the application of independent methodologies,such as customised procedures or standardchecklists, by employees within a process. Keymonitoring activities within the Group are as follows:5.1 Performance Reporting• SLT MeetingsSLT Meetings, which comprise of thePresident & GCEO and all divisional heads,are held regularly to deliberate on businessperformance, financial and operating risksand issues which include reviewing, resolvingand approving all key business strategicmeasures and policies. Progress, exceptionsand variations are also fully discussed andappropriate action taken. In 2012, therewere 11 SLT meetings held at Group level.Similar meetings are held regularly at OpColevel.Significant matters identified during thesemeetings are highlighted on a timely basisto the Board, who are responsible for settingthe business direction and for overseeingthe conduct of the Group’s operations.Through these mechanisms, the Board isinformed of all major control issues pertainingto internal controls, regulatory complianceand risk taking. This ensures that businessobjectives stay on course.• Major Control IssuesQuarterly reports on financial and operationalcontrol issues form part of the initiative toinculcate self-awareness of the financial andoperational internal control requirements ofthe Group.• Headline Performance KPIsHeadline Performance KPIs have been setand agreed upon by the Board as part ofthe broader KPI framework that the Grouphas in place, as prescribed under the GLCTprogramme. The headline KPIs represent themain corporate targets for the year and areannounced publicly as a transparentperformance management practice.• Control Health Check KPIThe Group’s Control Health Check KPI hasbeen implemented in Celcom and Robi.5.2 On-going Monitoring• Financial and Operational ReviewQuarterly financial statements and theGroup’s performance are reviewed by theBAC, who subsequently recommends themto the Board for their consideration andapproval. Monthly management accountscontaining key financial results, operationalperformance indicators and budgetcomparisons are also issued to the SLT toenable them to have regular and updatedinformation of the Group’s performance.• Internal AuditThe function of the IA is highlighted withinthe BAC Report section of this AnnualReport.103