Under the Swedish Companies Act and Swedish Corporate Governance Code, the Board of Directors is responsible for ensuring an effective internal control and risk management system is in place. Responsibility for ensuring good conditions for working with these issues is delegated to the Chief Executive Officer. Both Group management and managers at various levels of the company have this responsibility within their respective areas. Powers and responsibility are defined in guidelines, job descriptions and authorisation instructions.
Procedures for internal control, risk assessment, control activities and follow-up of financial reporting are designed to ensure reliable overall financial reporting and external financial reporting in accordance with IFRS and the relevant laws and regulations. The Board of Directors has also established a number of fundamental principles that are of significance to work with internal control. These include control and follow-up of outcomes compared with expectations and previous years, as well as oversight of such areas as the accounting policies applied by the Group.
Risk assessment and control activities
The company conducts regular risk assessments to identify risks within a number of areas. Such risks are evaluated continually by the Board. The way control activities are designed is particularly important in the company’s efforts to prevent and detect deficiencies.
The aim of internal control is to create conditions for operations in which requirements, goals and frameworks are clearly defined. Ultimately, the purpose of the internal control is to protect the company’s assets and thereby the shareholders’ investment. PE’s internal control follows an established framework comprising the following elements: shared values, corporate culture, regulations and policies, communication and follow-up of the way the business is organised.