Fidelcrest has a two-tiered management structure consisting of the Board of Directors and the Executive Management Board. The Board of Directors determines the overall strategy and supervises Fidelcrest’s activities, management and organisation while the Executive Management Board handles the day-to-day management of the company.
The Board of Directors and the Executive Management Board are responsible for Fidelcrest’s risk management and internal control systems, including compliance with current legislation and other financial reporting standards. Fidelcrest’s risk management and internal control systems in respect of financial reporting, including IT and tax, have been designed with a view to limiting the risk of errors and omissions in financial reporting.
MONITORING
The risk assessment process and control activities are monitored on a timely basis. Monitoring consists of both formal and informal procedures, which are used by the management and the people who own processes, risks and control procedures. Performance is monitored closely and compared with budgets and plans, analytical procedures and important key figures and financial ratios. The management continually monitors for compliance with relevant legislation and other financial reporting requirements and reports its findings to the Board of Directors and the Audit Committee.
The Board of Directors considers at least once a year whether the internal control systems are adequate. The internal control systems are discussed with the independent auditors at the board meeting at which the annual report is considered. Based on what the auditors state in the long-form audit report, the Board of Directors and independent auditors discuss the outcome of the audit, material accounting policies used, material accounting estimates and the appropriateness of the accounting policies used.
The Board of Directors and the Audit Committee monitor management’s response to any control weaknesses and/or lack of controls and ensure that the measures agreed to improve risk management and internal controls in respect of financial reporting are implemented according to plan. The management is responsible for following up on weaknesses in internal control identified in subsidiaries.
