Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 214 6. Subscriber Fraud Management The Subscriber Fraud Management ("SFM") function complements the Revenue Assurance function. While the Revenue Assurance function reviews controls within the revenue cycle as indicated above, the SFM function monitors daily subscriber calls on a near real-time basis. Appropriate actions are taken immediately for suspected fraudulent calls, using an industry developed system to monitor call patterns on a 24/7 basis throughout the financial year and other manual reporting investigations. It also reviews key new services and products for possible fraud risk and recommends counter-measures. Fraud findings with remedial actions taken are reported on a monthly basis to Management and presented half-yearly to the Audit Committee. 7. Business Continuity Planning The Business Continuity Planning ("BCP") is responsible for identifying activities and operations that are critical to sustaining business operations in the event of a disaster. These include facilitating the building of additional redundancies in network infrastructure, establishing alternate sites where key operational activities can be resumed and mitigating the risk of high- impact loss events through appropriate insurance coverage. A risk-based approach is applied in identifying the key initiatives and their levels of importance by reviewing critical systems and single-point failures as well as their impact on the business of the Group as a whole. During the financial year, selected critical areas as identified by risk priority were tested to assess the effectiveness of the implemented BCP initiatives. These tests were successfully executed and the progress of these initiatives was reported monthly to the Management and presented half-yearly to the BCP Steering Committee and the Audit Committee. 8. Regulatory The Regulatory function ensures compliance with the Communications and Multimedia Act 1998 ("CMA"), and its subsidiary legislation, which regulate the Group’s core business in the communications and multimedia sector in Malaysia. As a licensee under the CMA, the Group adheres to its licensing conditions, as well as economic, technical, social and consumer protection regulations embedded in the CMA and its subsidiary legislation. The Group actively participates in new regulatory and industry development consultations initiated by the regulator SKMM. The Regulatory function also frequently engages the SKMM and the Ministry of Information Communication and Culture in discussions on pertinent industry issues. 9. Legal The Legal department plays a pivotal role in ensuring that the interests of the Group are preserved and safeguarded from a legal perspective. It also plays a key role in advising the Board and Management on legal and strategic matters. The Board is briefed through reports to the Audit Committee as and when there are any changes in applicable provisions of the law. 10. Limits of Authority A Limits of Authority ("LOA") manual sets out the authorisation limits for various levels of Maxis’ Management and staff and also those matters requiring Board approval to ensure accountability, segregation of duties and control over the Group’s financial commitments. The LOA manual is reviewed and updated periodically to reflect business, operational and structural changes. 11. Policies and Procedures There is extensive documentation of policies, procedures, guidelines and service level agreements in manuals and on the Group’s intranet site including those relating to Finance, Contract Management, Marketing, Procurement, Human Resources, Information Systems, Network Operations, Legal, System and Information Security Controls. Continuous control enhancements are made to cater for business environment changes and in line with Maxis’ new and growing business strategy. 12. Financial and Operational Information A detailed budgeting and reporting process has been established. Comprehensive budgets are prepared by the operating units and presented to the Board before the commencement of a new financial year. Upon approval of the budget, the Group’s performance is tracked and measured against the approved budget on a monthly basis. Reporting systems which highlight significant variances against plan are in place to track and monitor performance. These variances in financial as well as operational performance indices are incorporated in detail in the monthly management reports. On a quarterly basis, the results are reviewed by the Board to enable the Directors to gauge the Group’s overall performance compared to the approved budgets and prior periods. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Continued