Alimak Group operates a risk management programme that is an integral part of the Company’s operational and strategic governance. Operations are based on a governance framework consisting of a Code of Conduct, policies and guidelines that regulate how Alimak Group is managed.
The Board of Directors and the President & CEO are ultimately responsible for ensuring that internal controls are developed, communicated to and understood by those Company employees who are responsible for the individual control procedures, and for ensuring that the control procedures are monitored, implemented, updated and maintained. Managers at each level are responsible for ensuring that internal controls are established within their own areas of activity, and that these controls fulfil their purpose.
At Group level, the President & CEO, and the Group’s CFO, together with the Leadership Team, are responsible for ensuring that the necessary controls are in place and are followed up. Internal controls include control over the Group and the organisation, procedures and follow-up measures. The aim is to guarantee reliable and accurate financial reporting – to ensure that the Company’s and Group’s financial reporting is drawn up in compliance with the law, relevant accounting standards and other requirements.
The internal control system is also intended to monitor compliance with the Group’s policies, principles and instructions. Furthermore, the system ensures protection of the Company’s assets, and that the Company’s resources are utilised in a cost-efficient and appropriate manner. Internal control is also exercised via follow up of the information and business systems implemented, as well as via risk analysis.
In order to further develop and strengthen the internal control the Board of Directors have implemented a “SAFE methodology” for the Group.
The SAFE methodology can be described as a way to:
- Safeguard the reporting and the Company assets
- Assist the subsidiaries to be firm, fair and friendly in their roles and help them to make their processes as efficient as possible
- Fix issues or see to it that outstanding issues from last year’s audit will be fixed within the current calendar year, as well as fixing reporting problems in the subsidiaries
- Ensure that group guidelines are regarded as internal rules and will be followed
The SAFE methodology will be used for internal control purposes for all of the Group Companies.
The Board of Directors has concluded that Alimak Group at present has no need to add a separate internal control function to the organisation, over and above current processes and functions for internal control. Follow up is exercised by the Board of Directors and the Company’s management, and the level of control is deemed to meet the Company’s needs. An annual assessment will be made to determine whether a separate internal control function is necessary to maintain good internal control.