The board of Directors of Senoko Energy is committed to maintaining a high standard of corporate governance within the Group. For effective corporate governance, the Group has put in place the following self-regulatory and monitoring mechanisms.
Board of Directors
The Board establishes overall strategic direction, corporate objectives, financial and operational policies for the Group. It oversees the management and corporate governance, and monitors the standards of performance and issues of policy. This is carried out both directly and through its Executive and Audit Committees, or by means of delegation to senior management personnel.
Executive CommitteeThe Executive Committee was formed to assist the Board and is responsible for supervising the management of the Group’s operations within the limits of the executive power delegated by the Board.
The Executive Committee oversees the day-to-day business operations and the implementation of strategies and policies of the Group, meeting regularly to review the progress of corporate development projects and business performance.
Audit CommitteeThe responsibilities of the Audit Committee include the review of the Group’s annual accounts before submission to the Board for approval, the review of system of internal controls, audit plans and reports with the internal and external auditors.
Internal AuditThe Board supports the need and is responsible for ensuring that a sound system of internal financial and operational controls and processes is maintained, as well as constantly evaluating and updating it, to safeguard shareholder’s interests and the Group’s assets. The objectives of the internal audit function are to provide reasonable assurance on: the reliability of financial information; the maintenance of proper accounting records; compliance with pertinent regulation, legislation, and best practices; and, the identification and management of business risks.
Risk ManagementThe Board vigilantly monitors the risks associated with trading activities, examining and reviewing a range of risk policies and issues including market risk, credit risk, liquidity risk, legal risk and operational risk. Strict standards of discipline have been imposed in all trading activities, in particular the bidding processes by the Group’s pool traders under the New Electricity Market regime effective 1 January 2003; as well as the use of derivative financial instruments to hedge foreign currency exposures and fuel hedging products.