Control Structure
The Group adopts the COSO Internal Control Framework as a
guide to ensure an appropriate and sound system of internal
controls are in place, which encompasses five inter-related
components i.e. the Control Environment, Risk Assessment
Framework, Control Activities, Information and Communication
and Continuous Monitoring process.
The Group’s operations is headed by the President & Managing
Director, who is assisted by five (5) Vice Presidents for the
following functions:
- Business Operations and Clinical Services
- Corporate and Finance Services
- Project Management and Biomedical Services
- Business Development Services
- Talent Management Services
All the hospitals within the Group are clustered into five (5)
zones, whereby one hospital at each cluster will act as the
control hub of the other hospitals within the cluster. Each cluster
is headed by an executive director who will oversee and control
all the hospitals’ operations.
At the hospital level, the Executive Directors and the Chief
Executive Officers are assisted by the Medical Directors who
oversee all clinical governance in the hospitals.
At the Corporate level, the Group exercises its oversight via the
Medical Advisory Committee on clinical matters and the Executive
Committee (“EXCO”) on all hospital operations matters.
Assignment of Authority and Responsibility
The Board has delegated certain responsibilities to Board
Committees which function with clearly defined terms of
reference. The functions and activities carried out by the Board
Committees are set out in the Statement On Corporate
Governance on pages 166 to 183 of this Annual Report.
The Board also assigns authority and responsibility mainly to the
EXCO which is headed by the President/Managing Director, to
manage operations as well as discuss strategic issues pertaining
to the delivery of services and business operations of the Group.
Several committees have been formed to identify, evaluate,
monitor and manage the significant risks affecting the Group
operations:-
1. Medical Advisory Committee (“MAC”)
MAC is the apex clinical committee that is responsible for
the Group’s clinical governance framework and guidelines
for sound and ethical medical practices.
There are various sub-committees under the MAC; namely
Clinical Governance Policy Committee, Clinical Governance
Action Committee, Clinical Ethics Committee and
Research & Development Committee
2.
Clinical Risk Management Committee (“CRMC”)
CRMC is entrusted to review and oversee the effectiveness
of the clinical ERM framework. All major clinical risk
incidents related to patient and staff safety are presented
to CRMC.
3.
Tender Evaluation Committee (“TEC”)
TEC is responsible for evaluating all tenders for purchases,
acquisitions or disposals of assets, award of contracts
and appointment of project development consultants/
advisors for the Group. TEC will make appropriate
recommendation to the Tender Board Committee.
Commitment to Continuous Learning
The Group, being in a service-oriented industry, recognises the
importance of sustainable investment in improving the skills
and competencies of its management, medical consultants and
employees. This is achieved through facilitating various training
programs, seminars, workshops and service quality initiatives.
To improve staff competency in delivering quality service, the
Group spends annually around 1% in addition to the total staff
remuneration costs on conducting staff training and
development programs. Each employee is mandated to undergo
at least 30 hours of training per year on work related areas
such as customer service, clinical safety and leadership
program, facilitated by the Group’s Talent Management
Services in collaboration with KPJ Healthcare University
College’s (“KPJUC”) teaching professionals or external trainers.
186
STATEMENT ON RISK MANAGEMENT AND
INTERNAL CONTROl
