Qantas 2013 Annual Report Download - page 71

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QANTAS ANNUAL REPORT 2013
The Qantas Management System (QMS), which has been
implemented across the Qantas Group, provides a common
standard for identifying, assessing and managing material
business risks across the Qantas Group. The QMS provides
guidance for business units regarding leadership, commitment
and planning, process management, risk management,
assurance and training and promotion.
Material risks and Management’s responses to managing
these risks are escalated to Executive Management, Board
Committees and the Board as appropriate and are reported
on bi-annually as part of the risk reporting process. Risk
management is also integrated into key business decision-
making and activities, including strategy development, projects
and change initiatives.
Management self-assessments, audits and risk management
reviews are undertaken to conrm that risks are being
effectively managed and reported to the Board through the
Audit Committee. On a quarterly basis, Executive Management
certies that there is an effective risk management process
in place within their respective areas of responsibility.
An independent review of the Framework is performed periodically
to assure effectiveness and drive continuous improvement.
Further details about the Framework and governance structure
are contained in the Qantas Investor Data Book available on the
Investors section of the Qantas website.
Safety, Health, Environment and Security Committee
To protect Qantas’ reputation as one of the world’s safest and
secure airlines and to manage the safety, health, environment
and security performance of the Qantas Group, the Safety,
Health, Environment and Security Committee is responsible for
assisting the Board in oversight and monitoring of the Qantas
Group’s operational safety system, the QMS.
The Safety, Health, Environment and Security Committee:
»currently has ve Members: the CEO and four Independent
Non-Executive Directors
»is chaired by Richard Goodmanson
»has a written Charter which is available on the Corporate
Governance page of the Qantas website
»is responsible for assisting the Board in fullling its
strategy, policy, systems oversight, monitoring and
corporate governance responsibilities in regard to safety,
health, environment, security matters and business
resilience including:
— compliance with related legal and regulatory obligations
— enterprise-wide risk management
The experience and qualications of Members of the Safety,
Health, Environment and Security Committee are detailed on
pages 50 to 53. Membership of and attendance at 2012/2013
Safety, Health, Environment and Security Committee Meetings
are detailed on page 72.
Internal Audit
The internal audit function is carried out by Group Audit and
Risk and is independent of the external auditor. Group Audit
and Risk provides independent, objective assurance and
consulting services on Qantas’ system of risk management,
internal control and governance through:
»maintaining and improving the risk management framework
as approved by the Audit Committee
»bi-annual risk reporting to the Audit Committee
»performing audits and other advisory services to assure
risk management throughout the Qantas Group
Group Audit and Risk adopts a risk-based approach in
formulating its audit plan to align audit activities to the key
risks across the Qantas Group. The audit plan is approved by
the Audit Committee bi-annually and submitted to the Safety,
Health, Environment and Security Committee for information
and approval where appropriate.
The Audit Committee approves the Group Audit and Risk
Internal Audit Charter which provides Group Audit and Risk with
full access to Qantas Group functions, records, property and
personnel, and establishes independence requirements. The
Audit Committee also approves the appointment or replacement
of the internal auditor. The internal auditor has a direct reporting
line to the Audit Committee and also provides reporting to the
Safety, Health, Environment and Security Committee.
In addition to Group Audit and Risk, operationally focussed
business units within the Qantas Group have their own internal
audit functions to provide assurance to accountable managers
on the effectiveness of operational risk management and
compliance. The ndings from these audit activities, along with
the status of audit management actions, are reported through
operational safety governance structures and to the Safety,
Health, Environment and Security Committee.