Safaricom - 2020 Sustainable Business Report

SAFARICOM 2020 | SUSTAINABLE BUSINESS REPORT 36 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS OUR STAKEHOLDERS CONCLUDING REMARKS Risk management Our governance and business ethics objectives are supported by our robust risk management processes. We use a combination of risk assessments, audit and fraud reviews to monitor and manage risk throughout the company. The decrease in the number of risk assessments conducted during the year reflects a change in strategy and approach. We now assess key processes from end-to- end, rather than reviewing a specific function or division within the business. This new approach yields improved insights because it cuts across functions and divisions. It also reduces the volume of assessments undertaken during each cycle. It is tempting to review the trend suggested in the preceding table as a positive indication of how well our ethics awareness training, and corruption and fraud detection processes are working, and this may indeed be partly the case, but the nature of disciplinary cases remains dynamic. The change in statistics indicates neither an improvement nor a worsening of environment. We recognise that it is unlikely a business the size of ours will ever be free from fraud entirely and that, to an extent, the better we become at detecting it, the more effectively it will be concealed. Overall, our main goal remains to have procedures in place that show that we are proactively detecting, investigating, and penalising wrongdoing. Monitoring corruption and fraud FY19 FY18 FY17 FY20 33 14 52 3 57 43 3 10 35 19 5 16 30 0 14 18 Fraud cases investigated Outcomes: Disciplinary warnings Dismissals Cases reported to law enforcement agencies Risk assessments (bi-annual cycle): comprehensive evaluations of range of risks, from operational & strategic to ethical Audit reviews: in-depth reviews that evaluate specific internal controls and processes Fraud reviews: conducted on specific areas/ processes suspected of having become compromised Special request reviews: reviews of special areas/ processes requested by management Monitoring corruption and fraud FY17 33 13 1 8 FY18 31 10 3 11 FY20 18 10 2 23 FY19 21 10 3 26 The figures presented in this graph have been externally assured and may differ from the Safaricom Annual report.