Managing risk is important. We address risks proactively and implement appropriate control systems.
Our mitigation procedures involve all relevant parts of the organisation, from subsidiaries to Group functions, Group Management and Board of Directors level.
Systems and processes
The Board of Directors continuously evaluates the overall and specific risks associated with the ROCKWOOL Group activities and operations, and the risks associated with the financial reporting process. As part of the general risk management, we have established internal control systems that are reviewed periodically by the Audit committee on behalf of the Board of Directors to ensure they are appropriate and adequate.
Risk management is part of the CFO function but reports directly to the Board of Directors. All managing directors of our subsidiaries and Group functions must ensure that foreseeable risks within their areas of responsibility are identified, scored for severity and likelihood, and quantified in terms such as predicted financial impact. Appropriate mitigation actions to control identified risks are proposed by the company or function department and studiously evaluated to ensure effective risk management at Group level.
During 2015, we adjusted and tested our risk management tools in order to improve risk management assessments even further. Implementation of these improvements will be finalised in 2016.