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risk management systems
from Annual report 2019
by Aquafin
Key features of the company’s internal controls and risk management systems
The Audit Committee plays a key role in the operation of the internal control system and the financial reporting process. More details of the tasks and role of the Audit Committee can be found in this committee’s activity report under the ‘Corporate Governance Statement’.
The Management Committee is also aware of the importance of the good operation of the internal control system and risk management. Risk-related matters are a permanent item on the agenda and discussed at the weekly meetings. The internal auditor receives an overview of the risks discussed.
A range of control measures are implemented in all departments as part of risk management. These control measures comprise policies, procedures, specified signing authorities, segregation of duties, built-in early warning indicators, management reporting, actual/budget comparison and so on. There is also an integrity policy, including a procedure for reporting integrity violations. The necessary measures have also been taken to ensure information security. New or amended legislation is noted and communicated. At the same time, the necessary steps are taken to comply with it. Processes and procedures are updated if necessary.
Since 2015 the company has held ISO 55001 certification for asset management. Inherent in this standard is management based on risks and opportunities. In this context, the risk matrix is an objective tool.
The company has also defined critical performance indicators, which are used as a measurement tool but also as a reporting system.
