The Group Management Board is responsible for the company’s internal risk management and control system and for evaluation of the system’s effectiveness. Strukton has an internal control system to:
- manage the risks associated with the operations and the achievement of corporate goals
- monitor the effectiveness and efficiency of business processes and
the consistency of accounting processes
The risk management framework is implemented throughout the group.
Responsibility for the control system lies primarily with the business units themselves. Risk assessments are an integral part of the company’s annual planning and control cycle, which is discussed annually with the Supervisory Board.
The risk management and control system for financial reporting purposes is based on the Strukton code of conduct; clear accounting rules are laid down in the Strukton Reporting Manual and in the standard reporting structure.
The external auditor’s activities are carried on with a view to issuing a report on the financial statements each year. The external auditor is appointed by the shareholder and reports to the Supervisory Board. The activities required for the auditor’s report are agreed in consultation with the Group Management Board and are extended to cover specific risks, business processes or locations that the Supervisory Board or Group Management Board believes require more detailed attention. Recommendations arising from the external audit are reported at every level to and are followed up by the Group Management Board. The Group Management Board reports thereon to the Supervisory Board.