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, especially during the current circumstances. 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. The Board appointed a compliance officer in December 2020, and TMH plans to roll out its compliance programme in 2022.

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 to the inflows and limit its exposure to the US dollar. Use more systematically electronic payments.

Area	*Health & Safety*
Trend
Risk factors	The COVID-19 pandemic impacts our operations significantly. 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 is paramount and non-negotiable. Meetings involving various departments and TMH’s clients are sometimes organised to assess the situation. If the working conditions are not safe, TMH can decide to stop its operations, as it did in February 2021, to ensure that the integrity of our employees and contractors was guaranteed. Our HR team ensures that we comply with all relevant and necessary regulations to ensure that our workplace is COVID-19 free. Hence, TMH decided to purchase more protective equipment for our employees and adjust our working environment.

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 COVID-19 pandemic.
Approach	Our procurement team is working closely with our operations team to optimise our inventory and diversify our portfolio of suppliers to find alternatives wherever possible. We prioritise our sourcing from Myanmar suppliers last year to reduce disruption risks.

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.