Internal Control System and Risk Management
INTERNAL CONTROL SYSTEM
Internal Control System aims to improve effectiveness and efficiency of operations, eligibility for financial reporting,
1. Formalization of the Company’s policies and procedures by Group Corporate Policy Division (GCP), for reviewing and approving based on the level of stipulated authorization. The Company’s policies and procedures are grouped into five categories: sales and marketing, finance, operations, governance, and general affairs (GA).
2. Policy renewal procedures for revision and improvements of existing processes, both related to the Company’s
financial and operational processes, are integrated into one synergy process.
3. Socialization of policies and procedures shall be done via Intranet and Web networks.
4. Formalization of the Company’s code of conduct, which includes the implementation of values, ethics and
employees’ integrity, can be accessed by all employees via the Company’s Intranet (portal).
5. The use of integrated computer programs in financial and operational transactions (sales, programming and human resources).
6. Separation of functions based on duties, responsibilities and authority in the organizational structure of the
Company and its business units.
7. Supervision by their respective superiors on every task and responsibility.
RISK MANAGEMENT SYSTEM
The Commitment of Risk Management
Risk Management System Implemented by the Company
The Company follows a comprehensive risk management system integrated with the strategic planning process and
the Company’s business activities. The Company’s risk management shall be implemented in all management levels
according to respective roles and functions.
1. GCP (Group Corporate Policy), serves as the risk management outlined in the form of policies and procedures.
2. Internal Control serves as the internal control risk management.
3. Internal Audit evaluates the risk management system, internal control and management information systems.
4. IT Audit ensures control over the system used by the Company.
5. CCSA (Compliance and Control Self Assessment) evaluates the risk management system, internal control and devices used in management information systems.
6. MARS (Management Awareness Reporting System) serves as the risk management to identify, report and resolve
problems faced by the Company and business units.
Main Risks Faced by the Company
Strategies in the risk management are implemented by sharing, avoiding and reducing risks through internal control system, or by retaining the existing risks. The main risks faced by the Company are generally divided into two categories:
• Risks due to compliance with regulations issued by the Company or other authorities.
• Risks due to changes in customer/viewer orientations.
• Risks due to the development of technology.
• Risks due to new competitors.
• Risks due to customer complaints/dissatisfaction.
• Risks due to processing errors.
• Risks due to poor asset management.
• Risks due to system error or misuse.
• Risks due to production failures.
• Risks due to failure or poor distribution of production to consumers.
• Complied with changes in the goverment′s existing regulations or with new rules and regulations both in
media industry and taxation.
• Maintained the quality and sustainability of the Company′s daily operations through: