INTERNAL CONTROL, RISK MANAGEMENT AND INTERNAL AUDIT
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Cencorp’s Board of Directors is ultimately responsible for the appropriate control of the Company’s accounts and finances. The Board is responsible for internal control, while the President and CEO handles the practical organization and monitors the efficiency of internal control. Business management and control are handled using a Group-wide reporting and forecasting system. The realized data are monitored on a monthly basis by business area and subsidiary. This data cover, among other things, net sales and result, order book, trade receivables and cash flow estimates. The minimum forecasting period is always three months. The President and CEO submits to the meetings of the Board of Directors and the Management Team a review of the Group’s position and development based on monthly reports. As part of the control system, Cencorp has adopted Group-level risk management principles. The purpose of risk management is to ensure that any significant business risks are identified and monitored appropriately. The Company’s business and financial risks are managed centrally by the Group’s financial department, and reports on risks are presented to the Board of Directors as necessary. The property, occupational safety and liability risks arising from business operations have been covered by taking out the appropriate insurance policies. Due to the small size of the company and the limited scope of its business operations, Cencorp does not have an internal auditing organization or an audit committee. The regular audits and control reports prepared by external auditors in connection with interim reports are also used for evaluating the efficiency of and continuously developing the company's risk management, control and governance processes. |
