Safaricom 2023 Sustainable Business Report

35 OUR BUSINESS OUR STAKEHOLDERS KPI SUMMARY PATHWAY TO A PURPOSE-LED TECHNOLOGY COMPANY OUR MATERIAL TOPICS • Introduced security, safety and privacy by design in all product innovations and systems development. • Collaboration with Financial Institutions, Telcos and System Integrators to co-create fraud management controls, enhance customer privacy and improve cyber security posture for the ecosystem partners. • Board of Directors, staff and partners continually trained on Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT), Privacy and Cyber Security. Creating strong, accountable institutions underpins a just society (SDG16) and promotes sustained, inclusive economic growth (SDG8). We work to realise these goals through long-established partnerships (SDG17) with the broader business community and various regulatory authorities. MAINTAINING A ROBUST GOVERNANCE FRAMEWORK The cornerstones of our governance structure are the Governance Charter and our Board of Directors which is accountable to all stakeholders. To monitor adherence to governance procedures, members of our Board meet a least four times a year and undertake collective and individual performance assessments at least once annually. The Safaricom Board comprises 11 Board members, five of whom are female and six of whom are male. ENSURING A POSITIVE RISK CULTURE Safaricom is committed to robust risk management practices as an integral part of good management. This is demonstrated by the top-down approach, with the board taking overall responsibility for managing risk. This drives a positive risk culture across the organisation. Our risk management framework, which is aligned to the ISO 31000 standard, enables us to identify, measure, manage and monitor strategic and operational risks across the business. The framework provides our management with a clear line of sight to enable informed decision making. It also helps to ensure that enterprise risk management practices are entrenched into all business processes and operations to drive consistent, effective and accountable action, decision-making and management practices. Recognising that we operate in a constantly changing social, business and regulatory environment, we continuously review our risk management framework to ensure it remains relevant and appropriate in terms of risk exposure. When determining our risk appetite, we review the broad range of risks we encounter during everyday business activities. We recognise that risk is an integral part of creating and preserving value and accordingly, have developed detailed processes to ensure all critical and major risks are proactively managed. GOVERNANCE, BUSINESS ETHICS AND RISK Please refer to the ‘Our Governance’ section of the 2023 Safaricom Annual Report at: https://www.safaricom.co.ke/ images/Downloads/Safaricom_Annual_Report_2023.pdf for more information regarding our governance structures and reporting processes. BOARD COMPOSITION Executive Director / CEO Male Female Non-executive Directors Company Secretary 1 9 1 45% 55% SDG GOALS OUR HIGHLIGHTS