INTERNAL CONTROLS The Board and Management have established various processes for the internal controls system of the Group which encompasses the structure, governance, policies, processes, tasks, behaviours and other aspects that facilitate effective and efficient operations. It enables the Group to respond appropriately to significant business, operational, financial, compliance and other risks to achieving the Group’s objectives. The key elements of the Group’s control environment include: SEGMENT KEY INTERNAL CONTROL ELEMENTS GROUP’S ORGANISATIONAL STRUCTURE The organisational structure is reviewed periodically to address changes in the business environment and to reflect the level of accountability and empowerment of the Management in all aspects of the Group’s major business environment, operations and functions. It defines a formal line of authority and responsibility that sets out clear segregation of duties to affect a more effective control at various levels of the Group. COMPETENCY AND TALENT MANAGEMENT The Management appoints employees with the necessary competencies to ensure that the personnel driving key operations are sufficiently skilled and exercise the required qualities of professional integrity in their conduct. Training and development programmes are identified to ensure that employees are kept abreast with the constantly changing environment and knowledge in order to be competent in line with achieving the Group’s business objectives. Continuous efforts are also in place to identify and grow the talent beyond the succession pool to ensure that new hires have the right skill sets for the appropriate positions in the Group. Performance monitoring is also established which serves as a tool to monitor performance against the set Key Performance Indicators (“KPIs”), covering key financial, customers, internal business process and learning and growth indicators. DELEGATION OF AUTHORITY The Group defines clear lines of responsibility and authority to facilitate swift response in the evolving business environment. Thus, the Board’s approving authority on certain activities are delegated to the Management through a clearly and formally defined Discretionary Authority Limits (“DAL”). The DAL provides the primary governance framework for the Group as the Board formally delegates specific oversight and supervisory functions and controls to the Management to more efficiently manage the business decision making process within the Group. It defines a sound framework of authority, accountability and segregation of duties to facilitate effective decision making at the appropriate level. Nonetheless, the key matters are still reserved for the Board’s consideration and decision making. The DAL is subject to reviews and enhancement to reflect continuous improvements in tandem with emerging risks and operational issues. 143 DNeX INTEGRATED REPORT 2022
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