NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 43

NWG // CORPORATE GOVERNANCE
has defined a number of basic documents of impor-
tance for financial reporting in order to guarantee an
effective control environment. The Board’s rules of
procedure and the instructions for the CEO serve to
guarantee a clear allocation of roles and responsibi-
lities, with the aim of operational risks being managed
effectively. The Board has also drawn up a number of
basic guidelines and policies that are important for
internal control, such as a Corporate Governance
policy, Financial risk policy, Anti-corruption policy
and Information policy. The basic control documents
are subject to review on an ongoing basis. An effective
control environment also requires an adequate orga-
nizational structure and ongoing reviews of this.
Company management reports to the Board on a
regular basis following defined routines. Company
management is responsible for the system of internal
controls that is required to deal with significant risks
in operating activities. Managers at various levels
within the Group have clearly defined authority and
responsibilities with regard to internal control.
Financial risk assessment
The material risks New Wave Group have iden-
tified in connection with the financial reporting are
inaccuracies in the reporting and valuation of stock,
intangible assets, accounts receivable, interest-
bearing liabilities, tax, currencies and the risk of
fraud, loss or embezzlement of assets. The greatest
financial risks in terms of value in the balance sheet
are:
# # Stock, which accounts for around 42 %
of the value of the Group’s assets
# # Intangible assets (mainly goodwill and
trademarks), which account for 18 %
of the value of the Group’s assets
# # Accounts receivable, which account for
around 14 % of the value of the Group’s
assets
# # Interest-bearing liabilities, which
account for around 40 % of the Group’s
balance sheet total
Control environment
The foundations of the internal control in relation to
the financial reporting consist of the general control
environment with organization, decision-making
paths, authority and responsibilities that have been
documented and communicated. Within New Wave
Group some of the most important constituent parts
of the control environment are documented in the
form of policies, e.g. Corporate Governance policy, IT
policy, Financial risk policy, Environmental policy as
well as instructions, such as authorization instruc-
tions, manuals and financial reporting manual.
Corporate Governance policy
The different corporate governance aspects of the
Group are summarized in the Corporate Governance
policy, which is also a governing document for other
Group policies.
Financial risk policy
The Group’s finance function works according
to a policy established by the Board that sets out
frameworks for how the Group’s operations shall be
financed and how, for example, currency risks and
interest rate risks shall be dealt with.
ANNUAL REPORT // 043