Controls over Financial Reporting The Controls over Financial Reporting (CFR) function plays an important role in evaluating and improving effectiveness of key controls surrounding Digi’s financial reporting process. Its primary objective is to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements. Reviews on internal controls over financial reporting is performed in accordance with Digi’s Internal Control over Financial Reporting Framework, which requires assessment based on materiality of significant accounts, and testing and evaluation of the design and operational effectiveness of key controls. The function adopts a continuous monitoring routine to follow up on unaddressed risks and non-operating controls, including periodic reporting to Management and the ARC on the status of controls over the financial reporting processes. Organisation Structure Digi has established an organisational structure with clearly defined lines of responsibility and accountability, proper segregation of duties and assignment of authority to ensure effective and independent stewardship. Board and Management Committees The Board Committees, namely the Audit and Risk, Nomination and Remuneration Committees have been established to assist the Board in executing its governance responsibilities and oversight function. These Board Committees have been delegated specific responsibilities all of which are governed by clearly defined Terms of Reference.The Terms of Reference of these Committees are accessible in the Corporate Governance section of Digi’s website at https://www.digi.com.my/our-company/ourgovernance. Various committees comprising key Management members have been established to assist and support the Board Committees to oversee core areas of business operations under their respective documented mandates. These Management Committees are: Vendor and Investment Committee (VIC) • Governs the approval process regardingmaterial capital investments, operating expenditure, vendor evaluation criteria and vendor selection, in accordance with Digi’s Delegation Authority Matrix (DAM) • Occurs bi-weekly or ad hoc sessions where necessary • Chaired by the Investment Controller with the VIC members as assigned / depicted in the Investment approval manual, in accordance with Digi’s DAM to ensure sufficient quorum for all investment approvals Regulatory Steering Committee (RSC) • Set direction and make decisions on regulatory and industry related projects/topics that have a significant impact on Digi. The RSC shall also provide guidance, opinions and views in relation to Digi’s position with external stakeholders on issues or topics that could potentially impact Digi in future, in relation to technology, revenue, customer experience, branding and corporate image • Meets monthly • Chaired by Head of Regulatory with key Management as RSC members Risk Management Forum • Forum members consists of Management who meets quarterly • Reviews and deliberates on significant risks (threats and opportunities) in Digi • Makes decisions on the coordinated action plans to mitigate risks Responsible Business Forum (RBF) • Chaired by the Chief Executive Officer (CEO), the forum includes the Chief Financial Officer (CFO), Chief Human Resource Officer (CHRO), Chief Technology Officer (CTO),Chief Corporate Affairs Officer (CCAO), and other key head of department members • Formulates Responsible Business strategies, policies, and goals • Monitors and facilitates adherence to the related Responsible Business policies and manuals • Supports departments to meet Responsible Business goals • Oversees Environmental, Social and Governance and Non-Financial Reporting performances • Responsible Business is an ongoing agenda presented to the Board on a regular basis Statement on Risk Management and Internal Control 123 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information
RkJQdWJsaXNoZXIy ODU0MjU5