Internal controls

The Board of Directors’ responsibilities for internal controls are regulated by the Swedish Companies Act, the Swedish Annual Accounts Act (1995:1554) and the Swedish Code of Corporate Governance. Information on the most important elements of Coor’s systems for internal controls and risk management relating to financial reporting should be included in Coor’s Corporate Governance Report each year.

Processes for internal controls, risk assessment, control activities and follow-ups on financial reporting have been designed to ensure reliable overall financial reporting, and external financial reporting in accordance with IFRS, applicable laws and ordinances, and other standards applicable to companies listed on Nasdaq Stockholm. This work involves the Board of Directors, EMT and other staff.

Control environment

The Executive Management Team (EMT), which is appointed by the CEO, bears overall responsibility for Coor’s operations being conducted consistent with the strategy and long-term targets set by the Board of Directors. The Board of Directors has prepared instructions and control documents designed to formalize the CEO’s, Board of Directors’ and Project Committee’s roles and division of responsibility. The manner in which the Board of Directors monitors and assures the quality of internal controls is documented in the Board of Directors’ rules of procedure and the group’s finance policy. The Board of Directors has also determined a number of fundamental guidelines that are material to work on internal controls. These include the control and monitoring of results achieved compared to expectations and previous years, as well as supervision of matters including accounting policies that the group applies.

The CFO’s responsibilities include the group’s financial reporting, business controls, audits and internal controls, and providing support coincident with mergers, acquisitions and potential divestments. The Finance function of the organization plays a significant role in the control process, with the ambition of reflecting, supporting and managing operations by utilizing clear reporting.

Risk assessment and control activities

The company regularly conducts risk assessments to identify risks in all segments. These risks, which include the risk of asset losses, impropriety and fraud, are regularly evaluated by the Board of Directors. The structure of control activities is especially significant in the company’s work on preventing and discovering shortcomings. The assessment and control of risks also involves the CEO, CFO, business area managers and country managers.