Other management systems
Raisio's internal control systems also involve HR management processes and procedures, which are the responsibility of HR management and part of Raisio's management system. They are developed to support internal control at the employee level. In terms of internal control, the key processes are competence development, including recruiting, work induction, training and on-the-job learning, as well as rewarding, performance appraisals and personnel surveys.
Quality management and environmental management are considered extremely important at Raisio. To ensure continuous development of product safety and to improve customer satisfaction, food safety standards are utilised in the Company's food plants. Compliance with quality systems is monitored effectively and required in all operations.
Raisio complies with all national and international laws and regulations related to its operations. Raisio's operations are ecologically and ethically sustainable and the company is known as a forerunner in many fields. By working safely and investing in the promotion of safety, quality and economicy of operations can be supported.
Risk identification and assessment play a vital role in the success of internal control. In order to control the efficiency and profitability of operations, the Group must be able to manage risks. Raisio's internal control is to provide the management with assurance that the established risk management policy is followed.
Raisio's risk management policy defines the targets, principles and responsibilities of risk management. Risk management is action aiming to identify and assess significant external and internal uncertainty factors that may threaten the strategy implementation and target achievement. Identified risks are eliminated, avoided, reduced or transferred to the extent possible. Raisio's risks fall into strategic, operational, damage and financial risks. Special emphasis is placed on preventive action and its development. Risk management is part of the Group's day-to-day operations and decision-making. Damages caused by products with inadequate safety and liability risks related to them are a key issue in the risk management of the Group producing foods and feeds.
Risk management function reporting to the CFO coordinates, develops and monitors risk management. External advisors are also used to develop risk management activities. Risk management function is responsible for the Group-wide insurance schemes. Their scope is assessed, for example, in conjunction with risk surveys carried out at company sites.
Each division is responsible for conducting its own practical risk management in line with the risk management policy and the Group's guidelines. Operative responsibility is held by the management of each division and function. The divisions survey and identify risks in connection with annual planning, among other things. The Group is prepared for operations in crises as well as for crisis communication.
Each division and service function, including financing, reports on its main risks to the Management Team.
Information and communications
The guidelines and principles of the Group's reporting system are available to everyone involved in financial reporting and can be found in connection with the Group's reporting system. In addition, the Group's intranet contains instructions related to financial reporting and control measures, as well as other Group policies and guidelines.
The performance and other key indicators of the Group and its divisions are monitored through monthly reporting and Management Team's monthly meetings, which also ensure the functioning of internal control. Management Team also follows the Group divisions' development of sales, results and overdue receivables on a weekly basis. Moreover, the divisions monitor the development of their sales and results more frequently, usually on a daily basis. Final assessment of the results is ultimately made by the Board at its meetings.
The Group's financial administration follows the accuracy of both external and internal financial reporting. An external auditor inspects the accuracy of external financial reporting and also monitors internal reporting.