Internal control and risk management

The Board of Directors’ responsibility for the internal control is governed primarily by the Swedish Companies Act, the Swedish Annual Reports Act (1995:1554) and the Code.

Internal control

Information regarding the most important aspects of the Company´s system for internal control and risk management in connection with financial reporting must each year be included in the Company´s corporate governance report.

Internal control and management is an integrated part of the Company´s operations and is broadly defined as a process, put in place by the Company´s board of directors, Group management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives described in the following. The procedures for internal control, risk assessment, control activities and monitoring with respect to the financial reporting have been designed to ensure reliable overall financial reporting and external financial reporting in accordance with EU- IFRS, applicable laws and regulations as well as other requirements, which may apply to companies listed on Nasdaq Stockholm. This work involves the Board of Directors, Handicare’s Group management and other personnel. The procedures for internal control also aim to promote Handicare’s development and profitability, secure the company’s assets and to prevent and detect any fraud or error.

The responsibility and liability of the Board of Directors for the internal control cannot be delegated to a third party.

Handicare has no independent function for internal audit. The company’s Board is jointly responsible for discharging this duty, which would otherwise be performed by the independent internal audit function. Among other actions, the Board has appointed an internal audit project leader, who is responsible for coordinating, monitoring and reporting internal control events.
The description of Handicare’s internal control process is based on COSO, which is published by the Committee of Sponsoring Organizations of the Treadway Commission.

Risks, risk assessment and control activities

Risk management is an important part of internal control. The Board of Directors is ultimately responsible for risk management at Handicare. It is Group management’s responsibility to identify, evaluate and manage risks and to report to the Board of Directors. Each year, an overall risk assessment is conducted.

Evaluation and reporting

The Board of Directors has ultimate responsibility for all compliance decisions at Handicare. The Board also reviews and approves all of the policies each year.

Audit Committee

The Audit Committee meets the requirement in respect of accounting and auditing competence as stipulated in the Swedish Companies Act. The Audit Committee is comprised of three members: Claes Magnus Åkesson (Chairman), Joakim Andreasson and Maria Carell.