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02
Value creation
Enterprise risk
management (ERM)
What is material in our
value-creation process?
The objective ofTelkom’s ERM programme is to effect an ERM process to reduce the
total cost of risk, add maximum sustainable value to all activities of the group, and
assist in achieving key strategic objectives.
Our ERM model is continuously
maturing, and is reviewed
to ensure that it aligns to
our group strategy. Our ERM
team conducted intensive risk
assessments to ensure that
the group identifies the risks it
faces, in line with our current
strategy. The realisation of
our strategy depends on us
being able to take calculated
risks in a manner that does not
jeopardise the direct interests
of stakeholders.
Sound management of risk
will enable us to anticipate
and respond to changes in
our environment, as well as to
enable us to make informed
decisions under conditions
of uncertainty.
Telkom adopted a risk
management process that
provides a converged view
of the risks in relation to
risk management, corporate
compliance and business
continuity management.
The board committedTelkom to a process of risk management aligned to the principles of King III, the
Committee of Sponsoring Organisations of the Treadway Commission (COSO) Integrated ERM Framework
of 2004 and ISO 31000. ERM methodologies are refined through continued research and development, and
benchmarked against international best practice.
The board, through the risk committee, is responsible for the total process of risk management and takes
ultimate accountability.
We adopted a decentralised risk management approach during the year. This places greater responsibility on
the management of the respective business units to implement and report on the policies, frameworks and
requirements of the group ERM function. Through the adoption of this approach, it is imperative to maintain
and enhance the current maturity of ERM across the group.
Business continuity management (BCM)
is a holistic management process that
identifies potential impacts that threaten
our ability to provide continuous service,
and provides a framework for building
resilience and the capability for an
effective response that safeguards
the interests of its key
stakeholders, reputation, brand
and value-creating activities.
Risk management
encompasses the development
and implementation of risk
frameworks that assist
management to understand,
evaluate and take action
on their risks with a view to
increasing the probability of the
group’s success and reducing
the likelihood of failure.
Compliance
is the group acting in
accordance with the
regulatory universe. Corporate
compliance drives adherence
to the regulatory universe
and provides assurance to
management and the board
through combined assurance,
in terms of the
King III.