Telstra 2007 Annual Report Download - page 63

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Telstra Corporation Limited and controlled entities
Corporate Governance and Board Practices
The Risk Management & Assurance group develops and promotes a common risk management language
and approach. This group is also responsible for conducting independent risk assessments in key areas and
reports its findings on significant risks with an evaluation as to the adequacy and effective operation of
controls to senior management and the Audit Committee.
The Board monitors the integrity of internal control and reporting systems and monitors the effectiveness
of our management of strategic, financial, operational and compliance risks. The Audit Committee, oversees
the management of risk within the company, approves the company wide risk policy, and reviews trends of
the risk profile. Through management reports and independent assessments undertaken by the Risk
Management and Assurance function, the Audit Committee monitors the adequacy and operating
effectiveness of the controls that seek to ensure significant risks are managed to an acceptable level.
Risk Management, internal compliance, control systems and our financial reports
The CEO and CFO have provided the Board with the certifications required by the Corporations Act and those
set out in the ASX CGC Recommendations in relation to our risk management and internal compliance and
control systems and our financial reports.
The CEO and CFO have provided the Board with confirmation that, in all material respects, the Company's
financial reports for the year ended 30 June 2007 present a true and fair view of the Company's financial
position and performance and are in accordance with relevant accounting standards. The CEO and CFO have
confirmed this statement is made based on a sound system of risk management and internal compliance
and control implemented in accordance with Board policy. In addition, the CEO and CFO have confirmed to
the Board that the Company's risk management and internal compliance and control systems, to the extent
they relate to financial reporting, are operating efficiently and effectively in all material respects based on
the risk management model adopted by the Company.
The CEO and CFO are assisted in this confirmation process by the work of:
• the Management Certifications Committee that reports to the CFO and, through him, to the CEO; and
• the Continuous Disclosure Committee (refer below).
These committees are comprised of members of senior management and together have responsibility for
considering the materiality of information and making recommendations to the CEO and CFO on our
reporting and disclosure obligations on a timely basis. In addition, regular reports on these procedures and
relevant findings are provided to the Audit Committee.
Telstra Values, Telstra Business Principles, Code of Conduct and other company policies
We have a number of internal operating policies and principles which promote ethical and responsible
decision making and timely and balanced disclosure.
Telstra Values, Telstra Business Principles and company policies
We provide guidance to our directors, senior management and employees on the practices, principles and
standards of corporate and personal behaviour required of all of our officers and employees in performing
their daily business activities through our Company Values, the Telstra Business Principles and our company
policies (including our Code of Conduct). The Telstra Business Principles, the Code of Conduct and other
company policies reinforce the standards of appropriate business and ethical behaviour we expect from all
employees. We have a mandatory training program for all employees to reinforce these standards.
Our Values, the Telstra Business Principles and our Code of Conduct are available on our website at
www.telstra.com.au/abouttelstra/investor/docs/pers_responsibility.pdf.
Whistleblower policy and service
We have in place a whistleblower policy and confidential whistleblower service which provides our staff
with an avenue to raise concerns they might have with behaviour that is potentially illegal, improper or
unethical. The whistleblowing process is supported by an independent service provider who specialises in
receiving sensitive reports or disclosures. All reports or disclosures are treated as confidential and reports