The Group Board Management is responsible for the company’s internal risk management and control system and for assessing its effectiveness. The system is aimed at controlling risks associated with the business operations and realisation of the company’s objectives. It also safeguards the effectiveness and efficiency of business processes and the consistency of the administrative processes.
The risk management framework has been implemented throughout the Group. Primary responsibility for the control system resides with the business units. Risk assessments are an integral part of the annual planning and control cycle of the company, which is discussed with the shareholder each year.
The risk management and control system for financial reporting purposes is based on the Strukton
Code of Conduct (.pdf - 592 kB). Clearly defined accounting rules are laid down in the Strukton Reporting Manual and in a standard reporting structure.
Once a year the
external auditor carries out audit activities in order to provide an auditor’s report on the financial statements. The external auditor is appointed by the shareholder. Each year, in consultation with the Group Management Board, the shareholder determines the additional activities besides those required in the auditor’s opinion. They may relate to specific risks, business processes or locations where the Group Management Board or shareholder considers further investigations to be desirable. Recommendations arising from external audit activities at every level are reported and followed up by the Group Management Board.
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Risk management and internal control.