Corporate Governance > Risk Management
Risk management is part of Talenom’s internal control. The company has a risk management policy, endorsed by the Board, which supports strategic and business objectives, and ensures the continuity of operations in all circumstances. The ability to take risks and manage them efficiently is a key factor in business success and creating shareholder value.
In accordance with the risk management policy approved by the Board of Directors, risk preparedness and identification are continuous and systematic activities, and are the responsibility of the management team. The management is responsible for defining, implementing and monitoring the implementation of measures as part of normal operational guidance.
Risk management is coordinated by the head of IT security and safety, who reports to the Group’s CEO. The company’s Board of Directors is provided, at least once a year, with a separate inventory of the risks and uncertainties that the Board of Directors uses to define risk management measures. The company presents the key risks identified in the context of the financial statements.
Internal control, together with risk management, sees to it that the company operates efficiently, publishes up-to-date and reliable information and complies with the regulations in force. Internal control is intended to ensure the efficiency and profitability of Talenom’s operations, the reliability of information and conformity with applicable legal and operating principles. Internal control aims to enhance the realisation of the steering task of the Board of Directors. The Board of Directors and CEO are responsible for organising the internal control.
The Board has primary responsibility for control of the company’s financial position and financial management. The Executive Board and Board of Directors monitor Talenom’s financial situation on a monthly basis and this information is disclosed in accordance with Talenom’s disclosure policy. Monthly reports presented to the Board of Directors comprise a key element of the company’s financial control. The monthly report is comparatively extensive, ensuring that the Board is continuously informed about the company’s performance in terms of operations and financial position.
Financial control is intended to detect any deviations in time. In addition, internal control of financial reporting aims to ensure that Talenom’s operations are effective and that decision-making is based on correct and reliable information, with adequate identification of business risks. Internal control also ensures that financial reporting complies with generally accepted accounting principles and the laws and regulations that are in force. It is the responsibility of the Board of Directors to ensure that the internal control of accounting and financial management has been properly organised. The Board is also responsible for supervising the financial reporting process.
The company applies accounting standards by employing consistent recognition principles and reporting standards through the Group’s Financial Management unit. The CFO is responsible for the Financial Management Unit together with the Group Financial Controller and Accounting Manager. Therefore, the CFO, the Group Financial Controller and the Accounting Manager are also responsible for supervising compliance with legislation and the Group’s guidelines. The CFO reports any findings to the CEO and the Board of Directors.
The company has not considered it necessary to establish an audit committee. Furthermore, in view of the scope of operations, the company has not deemed it necessary to establish a separate internal audit organisation. In both cases, the Board of Directors is responsible and assesses the need for committees annually. In connection with annual audit planning, the Board of Directors defines the key areas that it would be appropriate for the audit to focus on.