General Description of Internal Control and Operational Procedures
Internal control is a process applied by the Board of Directors, management and all levels of personnel in the Group to ensure that management has reasonable assurance that
1. operations are effective, efficient and aligned with strategy;
2. financial reporting and management information is reliable, complete and timely made; and
3. the Group is in compliance with applicable laws and regulations as well as the Company´s internal policies and ethical values including sustainability.
The first category addresses the basic business objectives, including performance and profitability goals, strategy, implementation of objectives and actions and safeguarding resources. The second category relates to the preparation of reliable published financial statements, including interim reports and condensed financial statements and selected financial data derived from such statements, such as earnings releases, reported publicly. The third deals with complying with those laws and regulations to which the Company is subject to.
Internal Control Framework of the Company
EB´s internal control framework consists of:
• the internal control, risk management and corporate governance policies and principles set by the Company´s Board of Directors;
• management overseeing the implementation and application of the policies and principles;
• finance function and business controllers monitoring the efficiency and effectiveness of the operations and reliability of the financial and management reporting;
• enterprise risk management process identifying, assessing and mitigating risks threatening the realization of the Company´s objectives;
• compliance procedures making sure that all applicable laws, regulations, internal policies and ethical values (including sustainability) are adhered to;
• effective control environment at all organisational levels including control activities tailored for defined processes and creating group minimum requirements for business and geographical areas;
• shared ethical values and strong internal control culture among all employees; and
• internal audit assignments reviewing the effectiveness of the internal controls as needed.