Internal control

The Board of Directors is responsible for the internal control of the company in accordance with the Swedish Companies Act and the Code. This description has been prepared in accordance with Sections 10.5 and 10.6 of the Code and is thereby limited to the internal control of financial reporting.

Nobia builds and organizes its operations based on decentralised responsibility for profitability. Nobia’s intensions regarding this decentralised responsibility for profitability and internal control through benchmarking are described in the Strategy section of the Annual Report.

The basis for the internal control of financial reporting is the control environment that comprises the company’s organisation, decision-making procedures, authority and responsibility, as documented and communicated in steering documents such as internal policies, guidelines, manuals and codes. Examples include the division of responsibility between the Board on the one hand and the President and other bodies established by the Board on the other, as well as instructions for attestation rights, accounting and reporting.

All documentation concerning principles and methods for reporting, internal controls and monitoring are collected in Nobia’s Financial & Administration Manual.

Each business unit manager is ultimately responsible for maintaining a high level of internal control, and the finance manager at each unit is responsible for following up and ensuring daily compliance with Nobia’s accounting procedures and principles. These instructions are included in the aforementioned manual.

Risk management
The company has introduced methods for risk assessment and risk management to ensure that the risks to which the company is exposed are managed within the established frameworks.

The risks identified concerning financial reporting are managed in the company’s control structure and are monitored and assessed continuously by the company. One of the tools used for this purpose is self-assessments, a process that is performed and evaluated annually.

Financial information
The company has established information and communication channels in order to support the completeness and accuracy of the financial reporting, for example through steering documents in the form of internal policies, guidelines, manuals and codes regarding the financial reporting applied by the appropriate employees.

The company monitors compliance with these steering documents and measures the efficiency of control structures. In addition, the company’s information and communication channels are monitored to ensure that these channels are appropriate for the financial reporting. Furthermore, the company has developed checklists to ensure full compliance with the disclosure requirements in the financial statements.

Monitoring by the Board
The outcome of the company’s risk assessment and risk management processes is addressed each year by the Board, which ensure that these processes include all material areas and provide balanced guidelines for the various executives.

The Board receives monthly financial reports and each Board meeting addresses the company’s and Group’s financial position.

The company’s Internal Control function, which is an integrated part of the central Finance function, performes reviews of the internal control and its work in this area follows a plan approved by the Board. The results of these reviews, measures to be taken and their status have been reported to the Board.