Sustainability Report 2016

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Safaricom Sustainability Report 2016 30
GOVERNANCE, RISK AND REGULATION
STRONG GOVERNANCE
We ensure that Safaricom is run in an ethical, transparent and accountable manner by having robust governance
processes and structures in place, along with explicit guiding principles and clear lines of responsibility. This minimises the
risk of corruption and fraud, which, in turn, bolsters the reputation and trust we enjoy, strengthens employee morale and
engagement, and improves stakeholder sentiment and interest.
Unlawful or dishonest dealings will not only impact revenues negatively, and damage the brand and reputation of the
company in the market, but are likely to result in legal charges, potential imprisonment, fines, a loss of investment and other
unconstructive consequences.
Our response to governance is multi-dimensional and requires having the right structures in place and then monitoring and
evaluating these regularly.
ROBUST RISK MANAGEMENT
Our governance objectives are supported by our risk management processes. We use a combination of bi-annual risk
assessments, together with audit and fraud reviews to monitor and manage risk throughout the company.
We also benchmark ourselves against other leading telecommunications operators and independent assurance is provided
through both internal and external audit functions. As a company, we also endeavour to apply the Precautionary Principle
to all of our activities to help ensure that we continue to act as a responsible corporate citizen.
‘Customer First’ risk management
One of our primary responses to the new company strategy was to explore ways of expanding our risk management
to meet the needs of our customers. An example of this new approach was to increase the number of fraud reviews
conducted on areas that affect customers directly, such as data confidentiality, premium rated services and fixed data
services.
We also sought to help customers by becoming more actively involved in tackling criminal syndicates preying on M-PESA
customers. With the support of the Inspector General of Police and senior Law Enforcement Agencies, we proposed and
formed the Mobile Money Investigation Unit (MMIU) in March 2014. The success of the new unit has already been such that
we are looking to decentralise it and set up units in each of our six regions to improve our reach and response times.
Our automated fraud management system was upgraded extensively during the year as well, enabling us to identify
suspicious patterns, such as the bulk sending of fraudulent SMS messages (blasting), across the network quicker.
An enhanced Revenue Assurance System was also introduced during the year to help ensure that customers receive
accurate bills and are not over-charged. The new system is more powerful and covers more revenue streams than the old
system.
Our security teams — the teams responsible for ensuring the physical safety of employees, equipment and members of the
public on company property and at Safaricom events — have also been restructured and devolved to the six regions to
ensure faster response times.
Please refer to the ‘Governance, Risk and Regulation’
section of the companion website for this report at
for more information about our governance structures
and reporting processes.