Safaricom 2018 Sustainable Business Report

29 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT 2018 SUSTAINABLE BUSINESS REPORT RISK MANAGEMENT Our governance objectives are supported by our risk management processes. The Audit and Risk Committee reviews and assesses the risk management processes of the company and ensures the adequacy of our overall control environment. Our risk management initiatives are led by the Director of Risk Management. We use a combination of risk assessments, audit and fraud reviews to monitor and manage risk throughout the company. We also benchmark ourselves against other world-class companies and leading telecommunications operators globally 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 our activities to help ensure that we continue to act as a responsible corporate citizen. S D G 1 6 4.3 YRS Average Tenure TENURE (YEARS) 0—3 4—5 6—8 9+ COMPOSITION Executives Independent non-executives Non-executives GENDER Female Male Demographics of the Board Please refer to the ‘Our Governance’ section of the 2018 Safaricom Annual Report at https://www.safaricom.co.ke/ investor-relation/financials/reports/annual-reports for more information regarding our governance structures and reporting processes. ANTI-CORRUPTION MONITORING MEASURES Audit reviews (in-depth reviews that evaluate specific internal controls and processes Special request reviews (reviews of special areas / processes requested by management) Risk Assessments (bi-annual cycle) (comprehensive evaluations of range of risks, from operational & strategic to ethical) Fraud Reviews (conducted on specific areas / processes suspected of having become compromised) Monitoring Corruption and Fraud 0 35 30 25 20 15 10 5 FY18 FY17 FY16 YEAR NO. OF INTERVENTIONS FY15 10% 20% 30% 40% 40% 20% 70% 70%