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APN
annual report
2011
RISK MANAGEMENT
In addition to the role of the Audit Committee in the area of risk
oversight and management, the Board monitors the operational and
financial performance of all business units through regular reports
from the Chief Executive Officer and Chief Financial Officer to enable
the identification of the key business and financial risks which may
prevent the Group from achieving its objectives.
This enables the Directors and senior executives to be fully informed
of such risks, to ensure that appropriate controls are in place to
effectively manage those risks.
The Company maintains a Risk Management Policy to facilitate the
oversight and management of material business risk. The approach
of the Group to risk management is based on:
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ensuring the Group:
–– identifies actual and potential risks which would have a
material impact on the Group;
–– assesses their impact on business and financial objectives
of the Group; and
–– implements effective and appropriate strategies and
actions to address risk issues;
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clearly identifies responsibility and accountability for financial,
operational and risk management issues; and
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continuously reviews and assesses the Group’s approach to risk
management.
Where appropriate, external professional advice is obtained to
evaluate, assess and/or rectify potential key business or financial
risks within the Group.
Implementation of enhancements to the Risk Management Policy
and risk management framework endorsed by the Board are pursued
on an ongoing basis. For example, the Board has adopted a Fraud
Policy to facilitate the development of controls which will aid in the
detection and prevention of fraud. The Risk Management Policy and
Fraud Policy are available on the Company’s website. In addition,
management further enhanced its risk management process by
developing and implementing the Group Risk Register. The Group
Risk Register is used by management to ensure that the significant
risks faced by the Company are identified, assessed and managed
appropriately. The results are communicated to the Audit Committee
periodically.
As part of the Company’s risk management and internal compliance
procedures, the Chief Executive Officer and Chief Financial Officer
are required to state to the Board in writing and in accordance with
section 295A of the
Corporations Act 2001
that the Company’s
financial reports present a true and fair view of the Company’s
financial condition and operational results, and are in accordance
with relevant accounting standards. The Chief Executive Officer
and Chief Financial Officer also confirm to the Board that their
statements are based on a sound system of risk management and
internal compliance and controls and that this system is operating
effectively in all material respects, and all material Group risks are
being managed effectively. Accordingly, through this statement,
management reports to the Board as to the effectiveness of the
Company’s management of its material business risks.
SHAREHOLDER COMMUNICATION AND CONTINUOUS
DISCLOSURE
As part of an overall policy of open disclosure, the Company
ensures that all material communications regarding its operations
are made available for all interested stakeholders in a timely fashion.
The Company has a policy in place to ensure compliance with
Australian Securities Exchange (ASX) and NZX Limited (NZX)
Listing Rules regarding disclosure and to ensure accountability at a
senior executive level for compliance. The Market Disclosure Policy
is designed to ensure that there is full and timely disclosure of the
Company’s activities to shareholders and the market in accordance
with the Company’s legal and regulatory obligations. In summary, the
Market Disclosure Policy provides for the following:
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the disclosure of price-sensitive information
(unless there is an applicable exception);
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the Company’s approach to market speculation;
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disclosure responsibilities and procedures; and
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how external communications are conducted.
During the reporting period, the Market Disclosure Policy was
amended to provide that:
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where possible, the Company will arrange for advance
notification of significant briefings (including, but not limited
to, results announcements) and make them widely accessible,
including through the use of webcasting or any other mass
communication mechanism as may be practical; and
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for shareholders who wish to attend General Meetings by proxy,
to the extent considered practicable, the Company will provide
for the electronic lodgement of proxy forms.
corporate governance
APN News & Media Limited and Controlled Entities