Qantas 2008 Annual Report Download - page 52

In addition, in accordance with Recommendation 7.3 of the ASX
Principles, the CEO and CFO also state to the Board that, in respect
of the entire reporting period:
1. “The declaration given in accordance with section 295A is
founded on a sound system of risk management and internal
compliance and control and that the system is operating effectively
in all material respects in relation to fi nancial reporting risks, based
on the risk management statement adopted by Qantas. This
statement incorporates as its foundation the principles included
in the Australian/New Zealand Standard on Risk Management
(AS/NZS 4360:2004).
2. The statements given in accordance with Recommendation 7.3
(above) regarding the risk management and internal compliance
and control system provide a reasonable, but not absolute level
of assurance and do not imply a guarantee against adverse events
or more volatile outcomes arising in the future.”
Safety and Risk Leadership Committee
Qantas has established a Safety and Risk Leadership Committee (SRLC),
whose members include Executive Management. The SRLC meets
quarterly to identify all major risks, ensure appropriate risk management
plans are in place and to monitor the effectiveness of the
implementation of the risk management plans. The SRLC prepares
a bi-monthly Group Risk and Audit Activity Report for the Board which
is reviewed in detail by both the Audit Committee and the SESC.
Risk Review Group
Qantas has also established a Risk Review Group (RRG), which reports
to the SRLC and is responsible for monitoring:
the identifi cation of material risks within the Qantas Group and
that appropriate risk management processes are in place and
operating effectively;
action plans in place to address inconsistencies or gaps identifi ed within
the risk management, internal compliance and control system; and
the review and update of risk infrastructure for relevance to the
Qantas Group.
The RRG meets monthly and its members comprise risk practitioners
and other representatives from across the Qantas Group.
Internal Audit
Qantas has an effective Internal Audit function which is materially
involved in risk identifi cation and management. The Internal Audit
function is independent of the external auditor, has full access to
Management and the right to seek information and explanation.
The Audit Committee oversees the scope of the Internal Audit and
has access to the Group General Manager Internal Audit without
the presence of Management.
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The Board Remunerates Fairly and Responsibly
The Qantas Executive Remuneration Philosophy and Objectives is set
out in full in the Directors’ Report (from page 60).
Remuneration Committee
The Board has a Remuneration Committee which:
has three members who are Independent Non-Executive Directors;
is chaired by James Strong;
has a written Charter which is available on the Corporate Governance
section of the Qantas website; and
is responsible for assisting the Board in fulfi lling its corporate
governance responsibilities in regard to:
remuneration policies for Non-Executive Directors;
remuneration policies for the CEO, CFO and
Executive Management;
Executive equity grants;
human resources policies; and
other matters referred to the Committee by the Board.
The experience and qualifi cations of Members of the Remuneration
Committee are detailed on pages 42 to 45. Membership of and
attendance at 2007/08 Remuneration Committee Meetings are
detailed on page 55.
The remuneration of the Key Management Personnel is disclosed in the
Remuneration Report from page 60. All equity-based Executive
remuneration is made in accordance with plans approved by shareholders.
On retirement, Qantas Directors are entitled to statutory superannuation
and certain travel entitlements which are reasonable and standard
practice in the aviation industry (see pages 66 and 67).
Review of Executive Management Performance
At least annually, the Remuneration Committee undertakes a review
of the performance of Executive Management against their Key
Performance Indicators (KPIs). The process for evaluating the
performance of Executive Management is detailed on page 62.
Executive Management’s performance for the 2007/08 year was
assessed against individual KPIs in August 2008.
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2008 Corporate Governance Statement
50 Qantas Annual Report 2008
For personal use only