Annual Report 2018

Internal Control

Internal control activities are designed to provide reasonable assurance that there are no misstatements in financial reporting, and that compliance with (local) laws and regulations is achieved, and the effectiveness of internal processes is continuously improved.

A comprehensive Internal Control Framework comprising a set of minimum internal control standards is embedded in the organization and management’s incentive schemes. Our standards are reviewed periodically to ensure that the design of the controls and guidance remains relevant and effective, and in line with the main risks identified. Operating companies and Group departments assess the components of the standards at least once every six months.

The results of these assessments, including improvement plans, are discussed with regional management, Internal Audit, and are reported into the Management Board and Audit Committee. Close-the-Gap sessions are organized by Group where relevant and residual risk exceeds the risk appetite.