KPJ Healthcare Berhad - Annual Report 2018

OUR BUSINESS & STRATEGY OUR PERFORMANCE AND OUTLOOK OUR RESULTS OUR GOVERNANCE APPENDICES ABOUT THIS REPORT 135 KPJ HEALTHCARE BERHAD www.kpjhealth.com.my At the Corporate level, the Group exercises its governance 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 Corporate Governance Report which is available at http://kpj.listedcompany.com/cg_report.html 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:- • Risk and Sustainability Committee (RSC) RSC is entrusted to evaluate and review the assessment of risk identification, the effectiveness of Enterprise Risk Management, process of assessing and managing Group’s Principle risks. The committee also reviews and evaluate the Group level risk exposures and management of significant clinical and non-clinical risks identified. • 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. • 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. • 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 Building and Tender Board Committee. Note: The Term of Reference (TOR) is available at www.kpjhealth.com.my 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 spent RM11.1million in 2018 (2017:RM12.2million) 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. To promote continuous learning and upgrading of knowledge, the Group has a sponsorship program for eligible executives to further their studies in various post-graduate program in hospital management and clinical disciplines. Since this program was started in 2005, 95 staff have benefited and obtained their Masters degrees from various universities such as Universiti Teknologi Malaysia, Asia E-University, University of East London and KPJ University College. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL