Internal control and risk management

The objective of the internal oversight for which the Board of Directors and the operative management are responsible is to ensure efficient, profitable operations, reliable information and compliance with regulations and business principles. Risk management is an integral element of the Group’s controls and oversight of operations.

The Board of Directors continuously monitors the Group’s trend of earnings and its financial position by means of the internal reporting system. The internal control system consists of detailed internal accounts, which are reconciled with the business accounts. The Group’s Finance Department is responsible for external reporting and works in close cooperation with the Business Control Department, which handles internal reporting, including financial monitoring, analysis and business planning.

The Group has a Treasury Policy, which was adopted by the Board. The policy concerns, among other matters, principles for the Group’s liquidity and funding as well as management of financial risks. Operational responsibility for this lies with the Group’s Treasury Department. The Group Treasurer compiles a Treasury report for the Board, the President and CEO and the Group’s Senior Vice President of Finance on a regular basis. The scope and frequency of the report are specified in the policy document and include monitoring of the Group’s liquidity, financing and risk exposure.

A report on financial risk management is provided in the information contained in the notes to the Group’s financial statements. A section on business risks can be found in the Report of the Directors.

The outside Auditors continuously evaluate the internal control system in their review reports to the Board.