Risk Management

Control environment

Our Audit, Compliance and Corporate Governance (ACCG) Committee is ultimately responsible for overseeing how TMH complies with all the relevant Myanmar laws and regulations, and managing the key risks which might impact its operations' sustainability. To ensure that TMH’s BOD always has the necessary information when making a decision, its ACCG Committee can task the Internal Audit team to investigate across the company. Internal auditors will then report back directly to the ACCG Committee Members. TMH’s control environment is summarised below.

Managing our risks

Risk management is essential to ensuring the sustainability of our operations. The tables below summarise how we are managing our most material risks.

Area	*Legal & compliance*
Trend
Risk factors	The interpretation and enforcement of Myanmar laws and regulations can involve uncertainty. The ongoing political and health crisis cause more complexity and might encourage unethical business conduct.
Approach	To mitigate this increasing risk factor, TMH embraces a precautionary approach: the Company has reinforced its due diligence process to assess the potential consequences of its operations. The Board reviews new and ongoing projects. Furthermore, TMH works with various service providers to monitor any change in the regulatory framework that may impact its operations and activities. The Company has also established a specific team in Nay Pyi Taw to that end. TMH has a compliance officer who was tasked by the Board to monitor the implementation of a newly approved Code of Conduct.

Area	*Finances*
Trend
Risk factors	Access to cash is more complicated for all organisations operating in Myanmar. The extreme volatility of the exchange rate is difficult to handle.
Approach	The Company has decided to: Engage with its key suppliers to negotiate terms and conditions Control its cash flows strictly to limit the outflows of cash relative to the inflows and limit its exposure to the US dollar. Work as much as possible with Myanmar suppliers and transact with them in Myanmar kyat.

Area	*Health, Safety & Security*
Trend
Risk factors	COVID-19 can continue to impact our operations. Violent and more frequent conflicts are a serious concern, especially in the areas where our employees and contractors may have to work to maintain telecom towers.
Approach	The safety of our employees are paramount and non-negotiable. Meetings involving various departments and TMH’s clients are sometimes organised to assess the situation. When working conditions are not safe, TMH can decide to stop its operations to guarantee the security of our employees and contractors. Our HR team ensures that we comply with all relevant and necessary regulations to guarantee that our workplace is COVID-19 free. Our teams engage regularly with our clients to ensure that it is safe for our people and partners to go across the country. We will never risk the lives of our staff and contractors.

Area	*Supply chain*
Trend
Risk factors	Sourcing the right goods and services and ensuring their delivery on time, as the flow of goods and people has been disrupted by the political crisis and COVID-19 pandemic.
Approach	Our procurement team and operations team are working closely together to optimise our inventory and diversify our portfolio of suppliers to find alternatives wherever possible. We prioritise our sourcing from Myanmar suppliers to reduce disruption risks and avoid any exposure to exchange rate fluctuation.

Ensuring compliance with TMH’s principles

Every month, the internal audit team will share its report and findings with the ACCG Committee. The internal audit team assesses, reviews, and challenges all the data shared with the Board, especially those related to TMH’s performance.

Our internal audit also monitors how the various departments comply with TMH’s internal rules and policies (our Employee Handbook, SOPs, etc.) Last year, we did not identify any breaches.

Quality management

Our approach to quality is also a component of our risk management system. Reflecting our commitment to operate as effectively as possible, we managed to renew our ISO 9001:2015 certification in July 2021.