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Our approach to risk management
Our risk management process
The efficient and effective management of risk is critical to the delivery of MTN’s strategy and supports
our investment case. The MTN board is accountable for all risks and delegates the responsibility for
overseeing the effectiveness of risk management to the committees of the board.
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Riskidentification
andassessment
Determining what could go wrong
(risk), why (cause) and the consequence
(effect)of the event should it arise, and
assessing the associated inherent
and residual risk.
Recordingand reporting
Recording the risk register into
the MTN management tool and
reporting to the appropriate level
in linewith the riskmanagement
delegation of authority.
Monitoringand review
Regularmonitoring to ensure effective implementation
of agreedmitigation actions.
Risk
management
Aligning risk management, compliance
and corporate governance
MTN’s risk management frameworks guide the
operation of our business units, with whom
primary responsibility for risk management
resides. In 2017, we further enhanced key risk
frameworks and methodologies to ensure
consistent application across the organisation
and conducted training and awareness
programmes across regions and in key markets.
The business risk management (BRM) function
continued on its three-year transformation
journey (which commenced in 2016) to create a
world-class function that caters to MTN current
and future business needs in an effective and
efficient manner. We continued to focus on the
following three pillars to achieve the desired
level of risk maturity:
Governance
–We started separating the second
and third lines of assurance in the company by
splitting out internal audit and forensics and
combining risk and compliance. We calculated
risk-bearing capacity and applied this through
the revised risk tolerance and appetite
framework. We enhanced the risk-escalation
process with stronger oversight from the group.
We revised the terms of reference of internal
governance structures to enhance the focus on
risk management and related oversight
activities.
People
– We acquired additional specialist skills
and increased the capacity of the assurance,
risk management and compliance functions,
boosting the capability of the group function
significantly.
Methods and practices
– We revised the tools,
policies and frameworks to enhance the
efficiency, effectiveness, co-ordination and
reporting of assurance and risk management
activities and placed greater emphasis on
monitoring of top risks at the top governance
structures.
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MTN Group Limited
Integrated Report 2017