Our Audit, Compliance and Corporate Governance (ACCG) Committee is ultimately responsible for overseeing how TMH is complying with all the relevant Myanmar Laws and Regulations, and managing the key risks which might impact the sustainability of its operations. To ensure that TMH’s BOD always has the right 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 summarized in the chart below.
|1||Every month, the Internal audit team will share its report and findings with the ACCG Committee. During FY18/19, the main topics discussed were related to TMH’s compliance with the New Companies Law requirements, the succession of its CFO and the management of a fraud identified earlier during the year. The internal audit team will assess, review, and challenge all the data shared with the Board, especially those related to TMH’s performance.|
|The Internal Audit team will always check how TMH’s departments are complying with the Laws which are relevant to their activities. The HR department will have to consider, for example, the Labour Laws while the Finances Department will need to follow the rules and regulations issued by the IRD. Then, the internal auditors will also monitor how they comply with TMH’s internal rules and policies. For example, the HR department issues an Employee Handbook, the Operations department has various SOPs, etc.|
TMH has three main categories of risks to manage: legal, financial and business-related.
|Legal||The Myanmar legal system is still evolving, and the interpretation and application of Myanmar laws and regulations involve uncertainty, which can impact our ability to operate our operations and to deliver the results we expected. For example, for our BTS and fiber operations, the laws related to land management are critical, and some of our customers’ projects were postponed recently because of the complexity of the law.|
|Financial||As a company operating in the ICT sector, and as our Company is investing in developing its future asset, access to capital is for us essential. The Myanmar Financial Sector is about to be modernized, according to the Myanmar Sustainable Development Plan. However, the pace of reforms in the banking sector is still unclear. Therefore, the lack of accessibility to a modern banking system may impact our capacity to deliver and implement our strategic roadmap.|
|Business||The sustainability of our operations relies on our ability to attract, develop and retain the right talents, and on our capacity to establish partnerships with the most relevant companies: they shape the quality of our products and solutions, and therefore contribute to our customers’ satisfaction. The profitability of our operations is directly proportionate to our capability to keep our promises and meet our customers’ requirements. Therefore, it is vital for us to assess them carefully before accepting a project to ensure our ability to secure our profit margin. In some cases, when the security of our operations and the safety of our employees and contractors are not guaranteed, we prefer not to proceed.|