BT 2015 Annual Report Download - page 106

104 BT Group plc
Annual Report 2015
nternal controls and ris anaeent
 has in place an internal control environent to protect the business
fro aterial riss which have been identified within the roup.
anaeent is responsible for establishin and aintainin adeuate
internal controls over financial reportin and we have responsibilit for
ensurin the eectiveness of these controls. o enable us to do this each
uarter the lines of business certif copliance with the urnbull uidance
and arbanes-le internal financial controls. anaeent reports
the outcoes of these reviews to us and no sinificant weanesses were
identified in the annual review.
s ris anaeent processes which have been in place throuhout
the period under review identif and onitor the riss facin the roup.
he riss which are considered aterial are reviewed reularl b the
peratin oittee and the oard.
Enterprise risk management
his ear we have paid particular attention to s
 reional fibre deploent prorae and the onoin internal
and eternal assurance prorae to itiate the riss arisin
and
 financial transforation prorae which sees to replace leac
processes and sstes with lobal standards.
urin the ear we heard fro the hief ecutive on the enterprise-
wide ris anaeent process and the e riss facin the roup as
a whole. e heard fro each line of business  on the e riss
in their part of the business as well as the actions the are tain
to addressthe.
 reported last ear that the coittee had iven particular focus to
s operations in tal and rail. e have continued to onitor the
position and sinificant proress has been ade to iprove the control
environent. e continue to eep under review the current trends of
securit riss facin  and the proress ade to anae these riss.
e also consider an whistleblowin reports includin the confidential
anonous subission b eploees reardin accountin internal
accountin controls or auditin atters ensurin arraneents are in
place for the proportionate independent investiation and appropriate
follow-up of such atters. e discussed the findins fro the eternal
review and benchar of s confidential hotline prorae at the
oint eetin with the
oinatin  overnance oittee .
he oard is ultiatel responsible for the roups sstes of internal
controls and ris anaeent. ou can find details of the oards
and our review of the roups sstes of internal control and ris
anaeent on pae 1.
overnance
he oard approved the transfer of oversiht of certain non-financial
riss fro the
oinatin  overnance oittee to the udit  is
oittee
in pril 01. hese will be a new area of focus for us over
the net ear.
e have our perforance reviewed annuall b invitin ebers
e eecutives and the eternal auditors to coplete uestionnaires.
heresults show that the level of discussion and challene led to a
health debate at eetins and that the coittee continues to be
eective in ters of behaviours and processes.
1LFN5RVH
Chairman of the Audit & Risk Committee
 a 01