FAIRFAX MEDIA  LIMITED  2013  51 CORPORATE GOVERNANCE The Company’s risk framework is overseen and monitored by both the Board and the Audit and Risk Committee.  As part of the risk framework, specific policies and approval processes have been developed to cover key risk areas  such as material investments and contracts, treasury, capital expenditure approval, occupational health and safety and  environmental processes. The Company’s Internal Audit function comprises the Manager, Corporate Risk and Assurance and a team of professionals who  work through a schedule of prioritised risk areas across all the major business units to provide an independent risk assessment  and evaluation of operating and financial controls. The Internal Audit and Risk function is independent from the external auditor  and the Manager, Corporate Risk and Assurance may meet with the Audit and Risk Committee in the absence of management.  Internal Audit and Risk reports its results to each meeting of the Audit and Risk Committee and the Manager, Corporate Risk  and Assurance attends the meetings.  The Board has received written assurances from the Chief Executive and the Chief Financial Officer that in their opinion: These statements to the Board are underpinned by the requirement for appropriate senior executives to provide a signed  letter of representation addressed to the Chief Executive Officer and Chief Financial Officer verifying material issues relating  to the executive’s areas of responsibility and disclosing factors that may have a material effect on the financial results or  operations of the Group. Information about the Board’s People and Culture Committee, its Charter, the Company’s remuneration policies for  Non-Executive Directors and the remuneration of the CEO and senior executives is set out in the Remuneration Report  beginning on page 29. Directors and managers must not trade directly or indirectly in Fairfax securities while in possession of price sensitive  information. Price sensitive information is information which has not been made public, usually about the Group or its intentions,  which a reasonable person would expect to have a material effect on the price or value of Fairfax securities or which would be  likely to influence an investment decision in relation to the securities. The Fairfax Securities Trading Policy regulates dealings by Directors and certain senior employees (“Designated People”) in  Fairfax securities (including shares, convertible notes derivatives and options). The purpose of the Policy is to ensure that  Designated People comply with the legal and company-imposed restrictions on trading in securities whilst in possession  of unpublished price sensitive information. The Policy sets out blackout periods when no trading is to be undertaken and  a process for authorisation of trading at other times. Designated People means the Directors, CEO, Company Secretary, those  employees who report directly to the CEO and those employees who are notified that they are subject to the Policy. TRADING IN COMPANY SECURITIES REMUNERATION (a) the financial statements and associated notes comply in all material respects with the accounting standards as required by  the  Corporations Act 2001 (b) the financial statements and associated notes give a true and fair view, in all material respects, of the financial position as  at the end of the financial year and performance of the Company and Consolidated Entity for the period then ended as  required by the  Corporations Act 2001 (c) there are reasonable grounds to believe the Company will be able to pay its debts as and when they become due and payable (d) the financial records of the Company have been properly maintained in accordance with the  Corporations Act 2001 (e) the statements made above regarding the integrity of the financial statements are founded on a sound system of  financial risk management and internal compliance and control which, in all material respects, implements the policies  adopted by the Board (f) the risk management and internal compliance and control systems of the Company and Consolidated Entity relating to  financial reporting compliance and operations objectives are operating efficiently and effectively, in all material respects.  Management has reported to the Board as to the effectiveness of the Company’s management of its material business risks (g) subsequent to the end of the financial year, no changes or other matters have arisen that would have a material effect on the  operation of the risk management and internal compliance and control systems of the Company and Consolidated Entity.