Risk management
4
Risk-based monitoring
Monitoring permeates all levels throughout the organization and
is performed by different functions depending on whether it is
related to operational or financial reporting matters. A range of
activities are undertaken to monitor, follow up and mitigate risks.
Monitoring is performed at several different levels
by key functions within the organization and differ-
ent activities are continuously undertaken to moni-
tor, follow up and mitigate risks.
• The Board of Directors plays an important role
in the ongoing process of identifying and evalu-
ating significant risks faced by the Group and the
effectiveness of related controls.
• The Audit Committee monitors the effectiveness
of the Group’s ERM and internal control systems.
In addition, the Committee also supports the Board
with the task of ensuring internal control over
financial reporting. This is accomplished through
several activities such as the review of basic con-
trols. The Committee also reviews all quarterly and
annual financial reports before publication.
• The President and CEO and Group Manage-
ment review performance through a compre-
hensive reporting system based on regular busi-
ness reviews of actual results, analyses of vari-
ances, key performance indicators (Securitas’
model for financial control, refer to pages 46–47
in the printed Annual Report 2016) and regular
forecasting.
• The functional committees determine and
communicate appropriate policies and monitor
the key issues within each area of responsibility,
refer to page 31 in the printed Annual Report
2016.
• The ERM Committee owns and manages the
process which provides tools and helps manage-
ment identify and manage the risks inherent in
Securitas’ line of business.
• The Group Management Assurance function
has a coordinating and monitoring role in relation
to certain internal control activities at Group level.
Risk assessments together with analysis of ERM
self-assessment results are used as the basis for
determining which activities are to be carried out
in relation to monitoring from an audit perspective.
• Local management is primarily responsible for
monitoring and ensuring compliance by local
units with S
ecuritas Group Policies including any
division-specific policies and guidelines.
Securitas Sustainability Report 2016
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