Raisio’s Board and CEO have the overall responsibility for organizing the internal control and risk management systems related to financial reporting. CEO, Management Team members and the business unit managers are responsible for ensuring that the operation of their responsibility areas is in line with the Group’s Code of Conduct, guidelines and regulations.
Raisio’s financial reporting is based on harmonised principles in all Group companies. International Financial Reporting Standards (IFRS) are used in the Group’s reporting.
For financial reporting to be reliable, accounting processes must be properly supervised. The Group’s financial management is supported and co-ordinated by the Group’s financial administration and business controller function. The Group’s financial administration is in charge of maintaining and developing the financial reporting process and related supervisory systems.
The supervision of financial reporting is based on the reporting principles and guidelines defined by the Group. The interpretation and application of financial reporting standards is centrally handled by the Group’s financial administration, also supervising compliance with standards and guidelines. The Group’s financial administration is in charge of determining and centrally maintaining the reporting, budgeting and forecasting processes. Raisio uses a uniform reporting system, and the same principles are applied throughout the Group.
Raisio has defined the processes of its main business operations, as well as the related control measures supported by the ERP system and other control measures related to the processes. Information systems play an important role in internal control, since many control measures are based on IT. Data transfers related to the financial process have been automated as much as possible, and automation is being further developed. External audits have been used to evaluate the systems and data transfer processes.
The Group’s reporting guidelines and principles 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 the Management Team’s regular 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.