Licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011

Corporate Governance and Risk

Overview

At MI we govern the affairs of the Company using a governance framework that is comprehensive in meeting with requirements of the regulatory landscape and business objective of delivering sustainable value to all our stakeholders. The governance framework in place is structured and institutionalized across all levels of the Company through our strong corporate values, our culture, corporate policies and procedures and our overarching philosophy of prudence applied in the way we do business. The governance framework is continuously evolving in keeping abreast with the advancement in technology which is driving new ways of doing business and bringing with it a wide ranging set of regulatory compliance requirements in addition to the existing regulations and directives. Its design supports effective decision making and aides the provision of oversight and monitoring of compliance and performance in respect of all our key stakeholders.

Additional Corporate Governance and Risk Management reports supportive information:

View Graph – Performance Governance
View Graph – Corporate Strategic Governance
View Graph – Mi Board Strategic Governance Process
View Graph – Operational Governance
View Graph – Financial Governance
View Graph – Legal and Compliance Governance
View Graph – ICT Governance
View Graph – Human Resource Governance

Performance Governance

Performance governance is considered a key governance mechanism at MI, and it’s all about governing various interlinks in our business model to derive the anticipated results.This entails a strong mechanism to monitor performance of each key facet of business so that, the Board has strong control over ultimate outcomes.

The approach towards performance governance revolves around understanding the strategic vision and mission of the entity and then breaking it down to identifiable corporate goals and objectives. Moreover it involves cultivating the performance governance values MI inherited since inception to our work force in order to achieve desired results. Hence a performance driven culture is adopted encouraging creativity that orients individuals to pursue breakthrough corporate gains, to maximize value created to key stakeholders. Corporate management faced the first year of the corporate plan doing business with vigor, ending the year with mix results. In the face of stiff competition and changing market dynamics corporate management dealt with their level best to keep overall performance in line with the plan.

The broad overview of MI’s performance governance mechanism is as follows:

Corporate Strategic Governance

Objective:

To identify potential future developments anticipated in the business environment and being able to react to them effectively in an anticipatory manner;

Responsibility:

The Board of Directors and the corporate management holds the prime responsibility on strategic governance. Strategic governance is given a higher priority governance necessity, over and above to all other governance aspects handled by the MI Board.

Key considerations are evaluated when embracing the strategy development process every three years.

 

MI Board strategic governance process

Operational Governance

Objective:

Ensuring quality of the operational decisions that are made by the appropriate authorized personnel upfront and operationally reviewing its effectiveness later.

Responsibility:

There is clear segregation of roles, authority and responsibility based on employees’ grade and level of experience and qualification towards related operation, for each core business function at MI.

The main areas of operations of MI have been identified and developed the operational governance process for each of them as depicted below.

Financial Governance

Objective:

Maintain financial discipline and financial soundness of the organization in a way that it avoids consequences of financial loss and failures.

Responsibility:

Overall financial management including treasury function comes under the purview of the CFO and his finance team ably supported by GM – Finance and other qualified and

experienced officers.

 

Legal and Compliance Governance

Objective:

Ensuring that MI adheres to the laws, regulations, guidelines and circulars of various regulators that is relevant to the industry and the business.

Responsibility:

MI staff members of all functional areas are expected to abide by prevailing legal and compliance requirements consistently for all business transactions and related business

activities.

 

ICT Governance

Objective:

As a key supporting function, ensuring that ICT strategic goals are kept in line with the company’s primary strategic goals so that ICT plays an integral role in improving performance of main business units and other functions.

Responsibility:

Head of ICT, who reports to the CFO, is entrusted with the tasks of coordinating with users their requirements and safeguarding the ICT systems and its data in keeping to internal ICT policies.

 

Human Resource Governance

Objective:

In order to manage the workforce productivity and to comply with legal and ethical obligations related to people management practices, instilling and practicing the right background and governance processors with proper HR rules and regulations. Also setting up a proper HR governance structure that enhances the quality of the decision making process at all levels of the hierarchy.

Responsibility:

The head of HR and her team together with members of the corporate management are required to ensure respective HR policies and practices so developed are adhered by everyone and to report to the board any lapses.  

 

MI’S COMPLIANCE STATUS TO CBSL RULES, DIRECTIONS, DETERMINATIONS, NOTICES AND GUIDELINES

MI’s compliance to laws and regulations with specific focus on CBSL Directions is reported by the Manager-Risk and Compliance to the Board. The Company has complied with the following regulation as at 31 March 2017

View Chart – Company regulations compiled at 31 March 2017
View Chart – Submission of CBSL web returns
View Chart – Returns submitted as per prevailing regulations
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