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key risk parameters. StarHub is committed to upholding high
standards of corporate governance and applying consistent
and effective risk management to enhance shareholder value.
The Group faces a variety of internal and external risks due to
complex business operations and the dynamic and competitive
market in which it operates. The Group recognises risk
management as an optimisation of the risk-reward relationship,
within known and agreed risk appetite levels. The Group
will manage or avoid situations or actions that risk having a
negative impact on its reputation and brand, network integrity
and business continuity. StarHub seeks to treat its customers
reasonably and fairly. StarHub requires its staff to uphold integrity. of the Group, are adequate and effective to address the financial,
StarHub also seeks to meet applicable legal and regulatory
requirements. The Group is prepared to take measured risks to
seek new growth and pursue value-creation opportunities as they
arise, while leveraging its current scale and core strengths.
The RC is assisted by the Management Risk Committee (MRC),
comprising relevant members of Senior Management. The MRC
oversees, co-ordinates and monitors the implementation of the
enterprise-wide risk management policies and procedures across
the Group, including the Group’s insurance programme and the
facilitation of self-assessment exercise required of significant
business units on an annual basis. The MRC also proactively
identifies existing and emerging significant risks, and manages
them at the enterprise level within StarHub on an ongoing basis.
The MRC reports to the RC on a regular basis.
The RC has authority to investigate any matter within its terms
of reference, and has full access to and co-operation by
Management. The RC will also have full discretion to invite any
Director or executive officer to attend its meetings, and to require
Management to provide it with such reasonable resources to
enable it to discharge its functions properly.
In terms of internal controls, independent audits are conducted
by the external and internal auditors on the effectiveness of
the Group’s key internal control systems. The AC is responsible
for reviewing the audit reports and assessing the effectiveness
of the actions taken by Management in resolving any lapses
or weaknesses based on the recommendations made by
the external and internal auditors, and taking into account
Management’s views.
For FY2015 , the Board has received assurance from CEO and
CFO that (a) the financial records of the Group have been
properly maintained and the financial statements give a true and
fair view of the Group’s operations and finances; and (b) the risk
management and internal controls of the Group are adequate
and effective to address the financial, operational, compliance
and information technology risks which the Group considers
relevant and material to its current business environment and
scope of operations. In addition, Management has implemented
StarHub Ltd Annual Report 2015
an enhanced process to sign off assurance to CEO and CFO, to Overview
enhance the current processes for supporting the Board’s opinion
on the adequacy and effectiveness of the risk management Strategy
system and internal controls of the Group.
Performance
Based on the risk management system and internal controls
established and maintained by the Group, the reviews performed Governance & Sustainability
by Management as supported by audit findings by external and
internal auditors and the relevant assurance by CEO and CFO,
the Board with the concurrence of the AC and the RC is of the
opinion that the risk management system and internal controls
operational, compliance and information technology risks which
the Group considers relevant and material to its current business
environment and scope of operations.
The Board notes that the system of internal controls and risk
management established by the Group provides reasonable,
but not absolute, assurance that the Group will not be adversely
affected by any event that can be reasonably foreseen as it strives
to achieve its business objectives. However, the Board also notes
that there is no system of internal controls and risk management
that can provide absolute assurance in this regard or against
the occurrence of material errors, poor judgement in decision-
making, human error, losses, fraud or other irregularities.
AUDIT COMMITTEE
As at 31 December 2015, the AC comprises the following non-
executive Directors, with a majority (including the AC Chairman)
being independent Directors:
• Mr Ma Kah Woh (AC Chairman, independent Director);
• Mr Nihal Vijaya Devadas Kaviratne CBE (independent Director);
• Mr Lim Ming Seong; and
• Ms Rachel Eng Yaag Ngee (independent Director).
During FY2015, the AC held four meetings and met with the
external auditors without Management at least once.
The AC members are appropriately qualified to discharge their
responsibility and collectively have strong accounting and related
financial management expertise and experience. The AC’s key
responsibilities include:
• reviewing and approving quarterly and year-end financial Financials
results announcements and financial statements, before
recommending to the Board for approval;
• monitoring compliance with relevant statutory and listing
requirements to ensure the integrity of the Group’s financial
statements, including the relevance and consistency of the
accounting principles adopted;
• reviewing and reporting to the Board at least annually the
adequacy and effectiveness of StarHub’s internal controls,