Internal control over financial reporting
Control environment
Internal control at Industrivärden aims primarily to ensure a correct valuation of outstanding equity positions as well as effective and reliable controls in the reporting of purchases and sales of shares and other securities.
Industrivärden’s control environment is built upon a clear division of duties and responsibilities between the Company’s various bodies and functions, a sound corporate culture and transparent operations. Relevant policies and guidelines are decided on and evaluated on a continuing basis by the Company’s board and management. These frameworks, together with internal, formal process descriptions, are well-established and known by the pertinent employees. Relevant governance documents adopted by the Board of Directors include, among others, the CEO’s instructions, which stipulate the division of responsibility between the Board and the CEO, and the Investment and Finance Policy, which lays out the frameworks for investments in financial instruments, financing and management of financial risks.
Decision-making channels, authority and responsibility at the operational level are defined in more detail by the CEO in investment rules, the Risk Policy and authorization instructions. Other frameworks for internal control consist of, among other things, the Code of Conduct, the Insider Policy and the IT Policy.
Risk assessment
Industrivärden continuously identifies, assesses and manages risks for material errors in the financial reporting. This process is fundamental for ensuring that the financial reporting is reliable. The Company’s assessments and measures are reported on a regular basis to the Audit Committee.
Control activities
Industrivärden has established a number of different control activities aimed at ensuring the effectiveness of the measures taken to prevent material errors in the financial reporting. Relevant control and monitoring activities make up an integral part of Industrivärden’s business, decision-making and accounting processes.
The Board of Directors continuously evaluates the financial reporting that is received in connection with board meetings and which covers the equities portfolio, gearing and other important conditions. The Audit Committee carries on a continuous dialogue with the Company’s auditor on the scope and quality of the Company’s financial reporting.
Against the background of Industrivärden’s operations, organizational structure and how the financial reporting in other respects is organized, in 2023 the Board did not find a need for a dedicated audit function in the form of internal audit.
Information
Industrivärden’s external communication of information is regulated by an Information Policy that is adopted by the Company’s board. In addition, internal guidelines are in place to ensure information security as well as correct and reliable communication of information.
Monitoring
Industrivärden’s board and management continuously evaluate the effectiveness and quality of internal control over financial reporting. Management reports on the Company’s operational and financial development to the Board on a regular basis in connection with forthcoming interim reporting, and board and Audit Committee meetings. Between such occasions, reporting is conducted as needed. The Company’s auditor reports its observations to the Audit Committee on a continuing basis.
