Loomis´ system for internal control is designed to manage, rather than eliminate, the risk of failing to reach business goals.
According to the Swedish Companies Act and Swedish Code of Corporate Governance, the Board of Directors is responsible for internal control and risk management. For Loomis internal control is not just a matter of internal control of the financial reporting, it also comprises operational risk management.
Financial reporting – The Loomis Group´s joint work for internal control regarding financial reporting is run by the Group´s financial function. Group management and the financial function of the Group have a joint responsibility and will monitor and control that the Group has local routines in place to fulfill requirements of global and local laws and regulations. The responsibility for the application of laws and regulations, compliance with the Group´s routines and procedures, as well as internal control, lies with the subsidiary and the Country President.
Furthermore, Group management and the Group´s financial function are also responsible for planning and follow-up of the work of the external auditors. This means that observations and recommendations from the external auditors are analyzed and discussed with the subsidiaries concerned and any action plans are communicated to those responsible, who take the required measures, which are subsequently followed up.
The financial function’s work with internal control is based on an annual work plan approved by the Audit Committee.
The process which the Board of Directors uses to review the efficiency in the system for internal control includes:
- Discussions with Group management regarding risk areas which have been identified by the Group management and the conducted risk analyses.
- Review of material issues arising as a result of the external audit and other reviews/investigations.
- An Audit Committee to create an independent oversight of the efficiency in the Group´s internal control systems and the financial reporting process.