The internal control is a process aimed to ensure:
- The accomplishment of the set objectives and targets
- The economical and effective use of resources
- The adequate management of the risks related to operations
- The reliability and accuracy of financial information and other management-related information
- Compliance with legislation and regulations as well as with the decisions of governing bodies, internal plans, rules and practices
Risk management, which refers to the recognition, assessment, control and monitoring of the risks arising from and materially related to business operations, is a part of internal control.
The Board of Directors and the President and CEO hold the overall responsibility for Ilmarinen’s internal control and risk management. The Board of Directors assesses the state of the entire internal control system annually based on the preliminary work of the Audit Committee.
The heads of the business divisions are in charge of the internal control within their areas of responsibility. The head of each organisational unit is in charge of implementing the internal control in his/her area of responsibility. Internal control is part of the normal management of operations.
Legal Matters is in charge of Ilmarinen’s compliance activities, a part of internal control, by ensuring that the operations comply with the legislation and the principles of reliable corporate governance in close co-operation with Ilmarinen’s governing bodies, management, various departments and the internal auditor.
Decision-making authority and responsibilities are defined as part of Ilmarinen’s management system which has been documented and communicated to the entire personnel. This system and the principles and values it defines, including the culture of due diligence in the company, form the basis for Ilmarinen’s control system. To prevent violations, the organisation has been designed so as to avoid risky work combinations.
A Risk Management Committee, consisting of representatives from Ilmarinen’s business divisions, is responsible for coordinating, developing and monitoring the company’s risk management system. The Actuarial Services and Risk Management division is responsible for the appropriateness of the company’s risk management system and developing it in co-operation with the Risk Management Committee.
The main responsibility for financial reporting lies with the Finance division. The Finance division’s main task is to ensure that true and sufficient information is available on the company’s result and financial position. This includes both the financial information required by statutory obligations (accounting and bookkeeping) and up-to-date and important information supporting and steering the company’s decision-making. The Actuarial and Risk Management division, which is responsible for the risk management of Imarinen’s investment activities, takes care of the income and risk reporting for investment activities as well as for solvency monitoring.
The internal control function assesses the company’s internal control and risk management ja proposes development initiatives regarding these.
More information about the Internal audit function.