Telstra 2009 Annual Report Download - page 57

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Telstra Corporation Limited and controlled entities
Corporate Governance Statement
Technology Committee
The Technology Committee allows the Board to review
technology developments which can enhance Telstra's
business in greater detail than is possible at Board meetings.
The Committee will regularly review product development
activities including proposed new technology products and
timelines to market. The Committee's purpose is primarily
educative.
NBN Committee
The NBN Committee was established during fiscal 2009. The
role of the NBN Committee is to assist the Board in discharging
its responsibilities by monitoring and advising on the
formulation and implementation of the Company's strategy in
relation to the Federal Government's NBN policy initiative and
the associated regulatory issues, and other matters arising
from, or in connection with, NBN.
Risk Oversight and Management
Management of opportunities and risks
Telstra faces a variety of risks due to the complexity of its
business and the dynamic business environment in which we
operate. The effective management of risks enables Telstra to
achieve its objectives, create value for our shareholders, satisfy
our customers, and protect our staff, our assets, the
community, and the natural environment. Telstra's
commitment is to manage those risks that arise in the course of
Telstra's business to an acceptable level, so as to maximise
opportunities and minimise negative outcomes. Recognising
this, Telstra has established a formal and robust approach for
the identification, management and oversight of its risks and
opportunities related to the successful pursuit of its business
objectives.
This approach is supported by Telstra's Risk Management
Policy, the Telstra's Business Principles and a number of other
policies that directly or indirectly seek to manage risks.
Risk management roles and responsibilities
Risk management occurs at all levels of the Company. Telstra
management and staff have primary responsibility and
accountability for the proactive identification, ownership and
management of risks. Management are responsible for
ensuring that they have appropriate resources and expertise
available to monitor the control environment and to assess the
ongoing effectiveness of risk treatments. Management also
periodically update the Audit Committee on their material
business risks.
In addition, Telstra has groups which manage and report in
specialised areas such as Compliance, Climate Change,
Treasury, Insurance, Credit, and Regulatory risks.
The Audit Committee oversees management's design and
implementation of Telstra's risk management system and
approves the Company-wide risk management policy. They
are also responsible for reviewing trends in the risk profiles and
monitoring the performance of management in implementing
risk treatments.
Your Board monitors the integrity of the internal control and
reporting systems, the strategic risk management systems,
and the processes for managing Telstra's strategic, financial,
operational and compliance risks. In addition, the Board has
established a program for its review and oversight of Telstra's
strategic and operational risks.
Telstra's Risk Management and Assurance group supports
management, the Audit Committee and the Board by
undertaking independent risk assessments in key areas and by
providing assurance and advice over the adequacy and
effectiveness of key internal controls, systems and processes.
For the financial year ended 30 June 2009, the CEO and CFO
have provided the Board with the certifications required by the
Corporations Act and those set out in the ASX Principles and
Recommendations. Specifically, your Board has received:
• Reports from management as to the effectiveness of
the Company's management of its material business
risks;
• The declaration from the CEO and CFO required in
accordance with section 295A of the Corporations Act
that the Company's financial reports for the year
ended 30 June 2009 presented a true and fair view of
the Company's financial position and performance
were in accordance with relevant accounting
standards; and
• Assurance from the CEO and CFO that the section 295A
declaration was founded on a sound system of risk
management and internal control and that the
system is operating effectively in all material respects
in relation to financial reporting risks.
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.
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 expected from all employees. A
mandatory training program for all employees is in place to
reinforce these standards.
Our Values, the Telstra Business Principles and our Code of
Conduct are available on our website.