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.