Control systems
KONE Corporation’s Board of Directors has ratified the principles of internal control, risk management and internal auditing to be followed within the Group.
Internal control
The goal of KONE’s internal control system is to ensure that the Group’s operations are efficient and profitable, that its business risk management is adequate and appropriate, and that the information created is reliable. The control system also makes it possible to oversee that the operating principles determined and instructions given are followed.
The Board’s Audit Committee monitors the functioning of the internal control process. The Corporation has an Internal Auditing Department, which is separated from the operational management and whose head reports to the Chairman of the Board. The Internal Audit Department is responsible for auditing internal control and the management of business risks. It reports its findings to the Audit Committee.
Risk management
The purpose of risk management is to recognize, analyze and control potential risks and threats to KONE’s operations. With respect to certain risks, the principles and main content of risk management are defined by KONE’s policies and guidelines. While the monitoring, coordination and management of certain risks take place at the Group level, each unit is responsible for carrying out risk management related to its own operations. Senior management regularly identifies and evaluates strategic and operational risks. As part of its efforts to manage risks of damage or loss, KONE has extensive insurance coverage.
Auditing
The task of statutory auditing is to verify that the financial statements and Board of Directors’ report provide accurate and adequate information on KONE’s result and financial position. In addition, auditing includes an audit of the Corporation’s accounting and administration.
According to the Articles of Association, the company must have a minimum of one and a maximum of three Auditors. The Auditors must be public accountants or public accounting firms authorized by Finland’s Central Chamber of Commerce. The Auditor is elected at the Annual General meeting for a term which expires at the end of the following Annual General Meeting.