The task for internal control is to assess the appropriateness, sufficiency and profitability of the company’s internal control system and risk management as well as the management and administration processes. Internal control is based on a healthy company and leadership culture. The Board of Directors, senior management and entire personnel of the company apply internal control so that the senior management can be reasonably convinced that
- the different functions of the company are serviceable, effective and operate according to the strategy so that the company optimally promotes the implementation of the business aims and strategy and secures sufficient resources,
- the company’s financial reporting and information provided to the senior management are reliable and timely, i.e. that the preparation of the financial reporting, such as the financial statements, business reviews and half-yearly reports and information derived from such data, is reliable, and
- the company adheres to applicable laws and regulations as well as the company’s internal guidelines, practices and values.
Internal control of financial reporting
With the internal control of the financial reporting, the aim is to ensure the accuracy, reliability, timely manner and appropriateness of the financial information.
Areas of responsibility and roles of risk management and internal control
The primary roles and areas of responsibility in respect to the company’s internal control and risk management have been determined as follows:
Board of Directors
The Board of Directors is ultimately responsible for the appropriate arrangement of the company’s administration and operation. The task of the Board of Directors is also to ensure in accordance with the good administrative practice that the company has sufficiently transferred the values applied to its operations. The Board of Directors determines the risk-taking level and the risk-bearing ability of the company and regularly re-assesses them as a part of the company’s strategy and goal-setting procedures. The Board of Directors reports its actions to the shareholders.
The Audit Committee of the Board of Directors is responsible for the following tasks relating to internal control:
- monitoring of the reporting process of the financial statements,
- supervision of the financial reporting process,
- monitoring the efficiency of the company’s internal auditing, possible internal auditing and risk management system,
- processing the descriptions on the internal audit and risk management systems relating to the financial reporting process included in the company’s corporate governance system report, and
- monitoring the statutory audit of the financial statements and the consolidated financial statements.
The Audit Committee will separately report to the Board of Directors of the company.
The Chief Executive Officer is in charge of the company’s day-to-day management in accordance with the instructions and orders issued by the Board of Directors. The CEO creates the foundation for the internal regulatory environment by demonstrating leadership and by providing guidelines to the senior management and by estimating their methods of controlling the business.
The task of the CFO is to ensure and supervise that the company’s accountancy and financial reporting practices are according to law and that both the external and internal financial reporting is reliable.