CORPORATE GOVERNANCE
Through the Business Plan, the Corporation implements plans to address the key risks. The Board monitors the risk management programs and oversees the implementation of appropriate systems to manage identified risks either directly, or through the Audit and Finance Committee. The Audit and Finance Committee regularly reviews the Audit Services reports and discusses significant risk areas with the internal and external auditors. The sale of a variety of ‘non-core’ assets to streamline and focus corporate activity has also led to the transfer of environmental liabilities and risk mitigation. CYBER SECURITY RISK SaskEnergy relies on its information and operations technology systems to safely and efficiently operate corporate assets, and to protect corporate data and personal information. These systems are subject to cyber security risks. Cyber security risks include but are not limited to targeted attacks, exposure to computer viruses, and breaches of corporate and personal information within technology systems managed by internal and external parties. A cyber security event could expose the Corporation to loss or misuse of critical data and information leading to property damage, disruptions to its operations, privacy breaches, loss of confidentiality and financial or reputational losses. In order to manage cyber risk, SaskEnergy has developed a cyber security strategy whereby the Corporation tests its systems, builds controls and conducts investigations. In addition, the Corporation has added incremental resources to manage and evaluate cyber risks and privacy processes related to the growing adoption of cloud migration, data analytics and mobile technology. SaskEnergy proactively and continuously monitors its systems to identify and address malicious activity, as well as potential or emerging threats. Business continuity exercises are also conducted. INTEGRITY OF INTERNAL CONTROLS AND MANAGEMENT SYSTEMS The Board and the Audit and Finance Committee receive reports from, and work closely with, internal and external auditors to promote financial transparency and ensure the integrity, effectiveness and adequacy of SaskEnergy’s internal controls and management systems. As part of SaskEnergy’s commitment to accountability, the Audit and Finance Committee reviews the financial
performance of the Corporation quarterly. Natural gas purchase transactions and credit risk are reported by management and actively monitored by the Committee. Pursuant to the directive of CIC, SaskEnergy has a process in place regarding internal controls certification by the CEO and CFO. This process is designed to provide reasonable assurance regarding the effectiveness of SaskEnergy’s internal controls over financial reporting. SaskEnergy’s financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). As part of the March 31 year-end audit, the external auditors have provided an opinion that the Corporation’s financial statements have been prepared in accordance with IFRS. The Board oversees the annual external audit plan of the appointed external auditor for the audit of the Corporation’s annual financial statements, and the annual internal audit plan carried out by SaskEnergy’s internal audit group. To preserve the independence of the role of the external auditors, the Audit and Finance Committee must pre-approve all non-audit services undertaken by the external auditor in accordance with the Corporation’s Non-Audit Services Policy. ROBUST SUCCESSION PROCESS The SaskEnergy Executive team uses a semi-annual review process to address strategic positions, keep the succession plan current through an evergreen process, respond to human resource developments, focus on continuous employee development, and mitigate succession and knowledge transfer risks. The Executive considers various strategic options to address short-term needs (emergency or unforeseen personal circumstances) and long-term needs (business structural changes and planned retirements). The Human Resources and Safety Committee of the Board of Directors receives a succession plan update semi-annually and reports to the Board on the succession management process. The Board of Directors and CEO directly oversee the succession plans for the CEO and the Executive. COMMUNICATIONS (WITH THE SHAREHOLDER AND STAKEHOLDERS) SaskEnergy is committed to the principles, of transparency, openness and timeliness in communication with its Owner, CIC, employees, stakeholders and the public.
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