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Our approach to risk
continued
Fraud risk management
MTN Group’s fraud risk management approach
continues to evolve to meet the dynamic shifts in
international fraud risk trends. Historically, we had
focused on fraud detection and response, however
we are now placing greater emphasis on proactive
fraud prevention strategies. The significant
components of our fraud prevention plan are the
effective integration of fraud risk management within
an integrated assurance environment, the rollout of
the MTN Group ethics framework and greater
organisational fraud awareness.
In 2016, 13 MTN operations had dedicated forensic
personnel. The rest of the opcos were supported by
the local internal audit and enterprise risk
management functions or the Group fraud risk
management function.
The majority of identified fraud incidents are
reported via internal channels with employees
preferring to report potential fraud incidents directly
to the investigation team. However, we at MTN
continue to provide employees and relevant
stakeholders with access to an anonymous reporting
facility managed by Deloitte. All whistle-blowing
reports received are investigated and feedback is
provided to the Group audit and risk committee to
ensure that we maintain independent governance.
MTN Group’s top fraud risks in 2016 were:
•
Procure-to-pay associated fraud risks.
•
Products and services-related fraud risks
(including distribution channels).
•
Financial services-related fraud risks.
•
Cyber crime and confidential information
leakage.
Internal audit
The MTN Group and all subsidiaries embrace the
principles of the King III report and recognise the
significant opportunities that present themselves to
companies that do so.
Internal audit continues to play the role of an
objective and independent value-adding assurance
provider. It takes into consideration the risks that
may hamper the achievement of strategic objectives
and risk profile of the organisation to determine the
effectiveness of the internal control environment
and risk management.
MTN’s internal audit function has adopted an
integrated assurance model as a co-ordinated
approach by three lines of defence. MTN has
dedicated teams that perform internal audits across
the Group. The current function is being transformed
in line with the recommendations of an evaluation of
the department that was undertaken during 2015.
At a Group level, internal audit reports functionally
to the audit committee and administratively to the
Group president and CEO. Internal audit coverage
is extended to all operations and all high-risk
processes are included in line with the internal audit
methodology.
MTN Group Limited
Integrated Report 2016
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