CORPORATE GOVERNANCE REPORT The appointed Head of the Compliance Function is responsible for the effective implementation of the Compliance Function and for facilitating compliance throughout the business by creating awareness, independent monitoring, reporting and the provision of practical solutions or recommendations. However, the primary responsibility for complying with any regulatory requirement lies with all members of staff conducting the particular transaction or activity to which the requirement applies. PPS implemented a combination of a centralised and a decentralised compliance function. Group Compliance is the central department, with the main role of developing the compliance policy (the PPS Group Boards approve such policy) and related standards to ensure a consolidated compliance risk management and reporting process throughout the PPS Group. The decentralised compliance function consists of business units’ compliance functions that are responsible for implementing the PPS Group policies, monitoring the activities of the business units and reporting the status of compliance to Group Compliance. PPS Investments, PPS Healthcare Administrators, PPS Short-Term Insurance and PPS Namibia have their own business unit compliance officers with oversight by Group Compliance for compliance-related matters. Group Compliance assumes direct responsibility and oversight for compliance risk management in PPS Insurance and its divisions. The compliance function performs its activities in accordance with these five principles: • Compliance requirements, including legislative requirements, such as acts, regulations, bills, directives, practice notes, industry codes of conduct, and relevant discussion documents, which impose obligations on PPS are identified and interpreted continuously • Compliance requirements are addressed in business processes • Management and staff are trained on the compliance requirements relevant to their roles. Staff members are trained on the compliance requirements relevant to their roles • Compliance monitoring is conducted and reported to provide assurance on the level of compliance • Compliance incidents or suspected incidents are reported and managed. Group Risk Management The taking of risk, in an appropriate manner, is an integral part of business. Success relies on optimising the trade- off between risk and reward, following an integrated risk management process, and by considering all internal and external risk factors. While conducting its business, the PPS Group is exposed to, and needs to take on, a variety of risks. The long-term sustained growth, continued success, and reputation of the PPS Group are critically dependent on the quality of risk management. Management is committed to applying best practice and standards, including the implementation of the ISO 31000 standard on Risk Management, Prudential Standards, Risk Management and Internal Controls for Insurers (GOI 3) and King IVTM. The PPS Group Enterprise Risk Management Framework, read with the PPS Group Enterprise Risk Management Standard, is aligned to such standards. The PPS Group’s risk philosophy is underpinned by its objective of member value creation, meeting member benefit expectations and achieving sustainable profitable growth, in a manner that is consistent with members’ expectations of the PPS Group’s risk appetite. This means the PPS Group must ensure that a high-quality risk management culture is instilled throughout its operations, built on the following main elements: • Adherence to the value system of PPS • Proactive risk management • A risk awareness culture via management of the business units • Disciplined and effective risk management processes and controls, and adherence to risk management standards and limits • Compliance with the relevant statutory, regulatory, and supervisory requirements by way of a robust compliance risk management process • Regular monitoring by Compliance • Review of control measures by Internal Audit • Oversight of the risk management process by the Group Risk Committee. The PPS Group Boards ensure that the PPS Group has implemented an effective ongoing process to identify risk, measure its potential outcome and then implement what is necessary to proactively manage these risks. 58 Corporate governance report
RkJQdWJsaXNoZXIy MTY2ODY3Ng==