Internal control

Loomis’ system for internal control is designed to manage rather than eliminate the risk of failing to attain business objectives.

Internal control

According to the Swedish Companies Act and the Swedish Code for Corporate Governance, the Board of Directors is responsible for internal control. Loomis’ internal control is an integrated part of the business. Internal control is based on a control environment that includes assessments and a management culture, follow-up, division of tasks, the duality principle, quality and efficiency in internal communication, and an independent evaluation procedure.

Loomis’ control environment

Loomis’ operations are controlled by separate offices for financial, cash, and operational control that report to Loomis’ executive management. Evaluation of the company’s internal control is conducted by the internal audit activities, which is independent of the business, and reports to the board’s audit committee.

Overall, the Group is operating through a flat and specialized organization, where managers are given distinct objectives and authority to take decisions and develop their activities in close contact with the customers. Delegation of decision rights is documented in an authorization manual which gives clear instructions to managers at all levels.

Competence and ability among the Group’s employees has high priority, and a continuous education, training and development is actively encouraged though a broad offering of action plans and programs. The Group has adopted a set of values in order to create a framework for the employees, and to facilitate good judgment and coherent decision making. Other components of the framework for corporate governance include several Group policies, routines and manuals which are currently assessed and updated.

Internal audit

The internal audit shall ensure the Group has functioning corporate governance, internal control, and risk management.  The audit committee compiles the instructions for the internal audit and revises them annually. The objective of the internal revision is to support the Group by assuring the existence of internal controls, quality assuring the internal control, and recommending improvements in corporate governance, internal control, and risk management. The results of the internal audits are reported to the Audit Committee four times a year.