Internal control framework at Cramo

As a model for defining internal control, Cramo has utilised the framework of the Committee of Sponsoring Organisations (COSO), which has been modified for Cramo’s purposes, for instance by adding items that support strategic and business objectives.

The Group’s Board of Directors focuses on shareholder value creation and value protection. In accordance with good corporate governance, the Board ensures that Cramo has internal control principles and also monitors the effectiveness of the Company’s internal controls, internal audit and risk management.

Cramo’s internal control framework consists of

  • The internal control, risk management and corporate governance policies and principles set by the Board of Directors;
  • Management overseeing the implementation and application of the policies and principles;
  • The Group Finance and Development function monitoring the efficiency and effectiveness of operations and the reliability of financial and management reporting;
  • The enterprise risk management process identifying, assessing and mitigating risks threatening the realisation of Cramo’s objectives;
  • Compliance procedures to make sure that all applicable laws, regulations, internal policies and ethical values are adhered to;
  • An effective control environment at every organisational level, including control activities, which is tailored to each process;
  • Shared ethical values and a strong internal control culture among all employees; and
  • The Board’s Audit Committee and the Group’s Internal Audit function monitoring the effectiveness of internal controls.

Corporate governance statements

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Corporate governance

The corporate governance at Cramo is based on Finnish law and the Company’s Articles of Association. The Group complies with the rules of Nasdaq Helsinki Ltd and from 1 January 2020 onwards the Finnish Corporate Governance Code 2020 published by the Securities Market Association. The Corporate Governance Code is available on the Securities Market Association’s website:  http://cgfinland.fi/en/. Cramo does not deviate from the Finnish Corporate Governance Code Recommendations.

The Group’s headquarters are in Vantaa, Finland and the Company is listed on the Nasdaq Helsinki Ltd.

Cramo prepares annual financial statements and interim reports conforming to Finnish law and International Financial Reporting Standards (IFRS). Statements and reports are published in Finnish and English.

Overview of Corporate Governance Components at Cramo Group

The Group’s control and management responsibilities are divided among the General Meeting of Shareholders, the Board of Directors with its three committees, Shareholders’ Nomination Committee, the President and CEO, the Group Management team and Managing Directors of subsidiaries. The Board of Directors supervises the performance of the Company, its management and organisation on behalf of shareholders. The Board of Directors and the Group management team are separate bodies, and no one serves as a member of both.