A prerequisite for Orkla’s system of decentralised responsibility is that the activities in every part of the Group meet general financial and non-financial requirements, and are carried out in accordance with the Group’s common norms and values.
The executive management of each company is responsible for risk management and internal control in the company with a view to ensuring:
Orkla’s risk management system is fundamental to the achievement of these goals. To ensure ongoing risk monitoring in individual companies, all boards of operational subsidiaries are required to carry out a thorough analysis of the company’s risk picture and internal control function at least once a year, in addition to the risk analysis that is an integral part of the company’s decision-making processes.
Great importance is attached in Orkla’s governing documents, which are available to all employees through The Orkla Way web portal, to clarifying the standards that apply to Orkla’s businesses, and who is responsible for monitoring compliance with the various standards.
A dedicated compliance function is established in Orkla. The compliance staff have a special responsibility for ensuring follow-up and compliance in the fields of personal data protection, data security and anti-corruption and business ethics. The staff are also tasked with helping to coordinate and prioritise other compliance-related work in collaboration with compliance officers in the various companies and central Group functions.
The Group’s risk management lies within the remit of the finance functions and is intended to ensure that all risk of significance for Orkla’s goals is identified, analysed and effectively dealt with by business areas and specialised staffs. This entails, among other things:
The Group’s risk management programme is reviewed on a regular basis.
Risk identification is also an important tool in preventive environment, health and safety (EHS) efforts, and the Senior Vice President EHS ensures the systematic, continuous follow-up of this work. All companies and businesses report their ten main EHS risk factors and associated risk mitigation measures as part of the annual reporting process.
As part of the Group’s internal control system, Orkla has an Internal Audit Department. The responsibilities of the Group’s Internal Audit Department are as follows:
There is systematic focus on business ethics and corporate responsibility at Orkla. Reference is made to the separate statement on Corporate Responsibility at Orkla, see Orkla’s Sustainability Report below.
The Orkla Group prepares and presents its financial statements in accordance with current IFRS rules.
The Group’s governing documents are assembled in The Orkla Way, and contain requirements and procedures for the preparation and presentation of interim reports and year-end reports. A set of Orkla Accounting Standards has also been drawn up, in which Orkla’s ten main principles for financial reporting are set out. Financial information is reported through the Group’s common reporting system, Hyperion Financial Management (HFM). Every month, each company reports figures in HFM, based on output from its own Enterprise Resource Planning (ERP) system. HFM has a general chart of accounts and built-in control systems in the form of data check accounts and check reports designed to ensure that the information is consistent. The reporting is expanded in the year-end reporting process to meet various requirements for supplementary information. Financial data are consolidated and checked at several levels in the business areas.