212 / 396
STATEMENT ON RISK MANAGEMENT
& INTERNAL CONTROL
SAFETY RISK
General Safety Risk Exposure
– The Group’s exposure to operational
safety hazards and risks may increase as we grow our routes, flights
and passenger volume.
The Group has implemented a Safety Management System, which
is required by regulations to identify hazards and to mitigate safety
risks. In addition, the Group also adopts industry best practices. For
instance, AAB has completed the IATAOperational Safety Audit, which
is an internationally recognized and accepted evaluation system
designed to assess the operational management and control systems
of the airline. The Group Safety Department oversees the adoption
of the highest standards in identifying, managing and communicating
safety risks across the Group. It also promotes a strong safety culture
at all levels of the organisation to ensure that all employees of the
Group are aware of their responsibilities in contributing towards safety.
INTERNAL CONTROL FRAMEWORK
The following key internal control structures (including the AC and the GIAD disclosed above) are in place to assist the Board to maintain a
proper internal control system:
Board Governance
The Board has governance over the Group’s operations. The Board is kept updated on the Group’s activities and operations on a timely and
regular basis through Board meetings with a formal agenda on matters for discussion. The Boards of AAGB and AAB have established four
committees, namely the AC, RMC, Nomination and Remuneration Committee (“NRC”) and Safety Review Board (“SRB”), to assist it in executing
different governance responsibilities. Further information on the various Board Committees in the Statement on Corporate Governance from
pages 186 to 192 of this Annual Report.
Senior Management Responsibilities
Regular management and operation meetings are conducted by Senior Management comprises the Group Chief Executive Officer (“GCEO”),
Deputy Group Chief Executive Officer (“DGCEO”), Chief Executive Officers (“CEOs”) of various Airlines Operating Companies (“AOCs”), and
Heads of Department.
Segregation of Duties
Segregation of duties is embedded in the key business processes. The Group has in place a system to ensure there are adequate riskmanagement,
financial and operational policies and procedures.
Internal Policies and Procedures
Policies, procedures and processes governing AAB’s businesses and operations are documented and made available to employees across
on AAB’s intranet portal. These policies, procedures and processes are reviewed and updated by the business and functional units through
a structured process of review. This is to ensure that appropriate controls are in place to manage risks arising due to changes in legal and
regulatory requirements as well as the business and operational environment.
[ ]
AirAsia Group Berhad
REPORTS AND FINANCIAL STATEMENTS
200