YTL PowerSeraya is committed to maintaining a high standard of corporate governance, professionalism and accountability to safeguard the interest of its stakeholders. We believe firmly that integrity, excellence and commitment by our people supported by sound policies, practices and internal controls are the success elements that will create long-term value and returns for shareholder.

Financial Reporting and Internal Controls
The Management provides monthly accounts and reports on the Company’s operational performance to all Directors. Apart from the periodic updates provided by the Management, the Directors may at any time seek further information from, and discussion with, the Management on the Group’s operations and performance.

The Company maintains internal controls and systems designed to provide reasonable assurance on the integrity and reliability of its financial statements and to adequately safeguard, verify and maintain accountability for its assets. Established procedures in operations and finance ensure that adequate internal controls exist.

The effectiveness of these controls and systems are subjected to periodic reviews by outsourced internal auditors. In addition, the external auditors also review the effectiveness of key controls as part of its audit plan for the year.

Both internal and external auditors have full access to the Audit Committee and all potential weaknesses are reported.

Internal Audit
The Company has a policy on outsourcing its internal audit work. In addition, the Company also believes in rotating the internal auditor after the incumbent has served a certain number of years. 

The scope of the internal auditor is to:
	review the effectiveness of the internal controls of the Company and its subsidiaries;
	provide assurance that key business issues and operational weaknesses are identified and managed;
	ensure that internal controls are in place and functioning as intended; and
	ascertain if operations are conducted in an effective and efficient manner.

On a quarterly basis, the internal auditor reports its activities and findings to the Audit Committee.

Risk Management
The Board of Directors is responsible for determining the type and level of risks that the Company undertakes in achieving its corporate objectives. This is achieved through enterprise-wide corporate risk statements, frameworks and policies approved by the Board. Because of a changing business environment and for company strategy, a risk posture statement defining the Group’s risk appetite is submitted and approved by the Board of Directors on an annual basis.

The Board has delegated the authority to formulate, review and approve non-major policies on monitoring and managing risk exposures to the Risk Management Committee. The Risk Management Committee will propose and recommend major risk-related policy decisions to the Board for approval. The principal risks of the Group comprise strategic, credit, market and operational risks. Significant business risks have been identified by the Company and an appropriate risk management plan focussing on the key risks has been developed. To enhance the corporate governance framework by introducing a Group-wide Fraud Risk Management Policy and Framework that will form part of the overall organisation’s Code of Conduct and Code of Ethics.