KPJ Healthcare Berhad - Annual Report 2018

48 KPJ HEALTHCARE BERHAD KEY RISKS AND OPPORTUNITIES RISK DESCRIPTION IMPACT OF RISK ON KPJ HOW WE MANAGE THE RISK Integrity & Ethics Expectations for employees of the Group to adhere to the highest standards of ethical conduct and values, and to avoid conflict of interest in any ongoing or potential business dealings in the Group with various suppliers and service providers. Non-compliance could affect KPJ’s reputation in the marketplace, thus diluting its brand value and market appeal. • Staff reaffirm their commitment to KPJ through the Staff Integrity Pledge Ceremony. • Employees to report any misconduct or unethical behaviour by any staff member directly to the President and Managing Director. • Comprehensive Whistle-Blowing Policy covering three tiers of whistle-blowing reporting line ie , President and Managing Director, Chairman of the Audit Committee, and Chairman of the Board. • KPJ is a signatory to the “Malaysian Corporate Integrity Pledge” since 2011. • No Gifts and Entertainment Policy applicable to all staff. • Asset Declaration Policy applicable to staff of Manager grade and above. • Tender Evaluation Committee is responsible for evaluating all tenders for purchases, award of contracts and appointment of project development consultants/ advisors and makes its recommendation to the Building & Tender Board Committee. Compliance with Accreditation Requirements KPJ’s hospital accreditations are obtained from internationally acknowledged bodies, namely the Malaysian Society for Quality in Health (MSQH) and the Joint Commission International (JCI), which puts its hospitals on par with international hospital accreditation standards. It is necessary to maintain KPJ’s hospital accreditations in order to remain a leader in the marketplace, thus ensuring its reputation as the healthcare provider of choice. • Maintaining national and international accreditation to remain a leader in the healthcare sector and to support health tourism initiatives. • All hospitals with the MSQH and JCI accreditations have to undergo stringent surveillance audits by the respective surveyors and audit teams to ensure compliance with accreditation standards and requirements before accreditation certification can be renewed, usually every three years. Insurance Management KPJ, as with other healthcare companies, is sometimes subjected to legal actions alleging negligence, malpractice and other claims. Any legal action could potentially lead to the payment of damages and significant legal costs. • KPJ has in place adequate insurance coverage on its major assets and to protect against potential liability arising from its operations. • All specialists, medical officers and other healthcare professionals of KPJ Group are covered by Medical Malpractice Insurance to mitigate against medico-legal risks in the course of performing their duties. 5 4 6