Company Board of Directors is responsible to organize the internal controls in the company. Internal control aims to ensure the efficiency and profitability of company operations, the reliability of information and compliance of the rules and regulations. Internal control is part of the daily management of the company.
The control system is based on Group-level policies, guidelines and processes and controls of business operations and support processes. The operating culture is being built by the steering and control of the company’s operations by the Board of Directors, the management methods of the company’s management, the company’s organizational structure and management system, effective utilization of global information system as well as the employees’ competence.
The company does not have a separate internal audit function, but the financial department under CFO prepares internal audit procedures to ensure that the whole group applies similar policies and practices. The Board considers the need for the internal audit procedures and how it is arranged annually. The Board of Directors may also use external resources to conduct the internal audit.
The Board of directors has confirmed the risk management principles of Detection Technology. The company’s risk management supports the attainment of strategic goals and ensures the continuity of business operations.
There are normal business risks related Detection Technology business and they are a natural part of its strategy and objectives. The company avoids to take risks that might endanger the continuity of operations or that are uncontrollable or that can significantly harm the company’s operations. In the process of risk management, the goal is to identify and evaluate the risks, after which a risk specific plan is drawn up and concrete action is taken. Such actions may include, for example, avoiding the risk, diminishing the risk by different means or transferring the risk by insurance or agreements. When necessary the Board of Directors will be reported all material changes and new significant risks that are identified in the process of risk management.
Internal control and risk management systems in relation to financial reporting
The Board of Directors has the overall responsibility for the internal controls of the Company. The CFO is responsible for ensuring that processes, procedures and internal controls are available to safeguard the quality in financial reporting. The financial department determines and reviews the control activities of financial reporting processes, which include various rules, process descriptions, reconciliations and analyses, which are to ensure the validity of reported information. Detailed financial reports are produced each month at Group level. Reports are reviewed systematically with the Group management headed by the President and CEO.