New Wave Group AB Annual_report_2018_EN_HQ | Page 43

NWG // CORPORATE GOVERNANCE
to guarantee a clear allocation of roles and respon-
sibilities, with the aim of operational risks being
managed effectively. The Board has also drawn up
a number of basic guidelines and policies that are
important for internal control, such as a financial
policy, instructions for accounting and reporting,
employee handbook, anti-corruption policy and a
communications policy. The basic control documents
are subject to review on an ongoing basis. An effective
control environment also requires an adequate orga-
nisational structure and ongoing reviews of this.
Company management reports to the Board on a
regular basis following defined routines. Company
management is responsible for the system of internal
controls that is required to deal with significant risks
in operating activities. Managers at various levels
within the Group have clearly defined authority and
responsibilities with regard to internal control.
Financial risk assessment
The material risks New Wave Group have identified
in connection with the financial reporting are inac-
curacies in the reporting and valuation of stock,
intangible assets, accounts receivable, interest-
bearing liabilities, tax, currencies and the risk of
fraud, loss or embezzlement of assets. The greatest
financial risks in terms of value in the balance sheet
are:
# # Stock, which accounts for around 46 %
of the value of the Group’s assets
# # Intangible assets (mainly goodwill and
trademarks), which account for 21 %
of the value of the Group’s assets
# # Accounts receivable, which account for
around 15 % of the value of the Group’s
assets
# # Interest-bearing liabilities, which
account for around 30 % of the Group’s
balance sheet total
Control environment
The foundations of the internal control in relation to
the financial reporting consist of the general control
environment with organization, decision-making
paths, authority and responsibilities that have been
documented and communicated. Within New Wave
Group some of the most important constituent
parts of the control environment are documented in
the form of policies, e.g. IT policy, financial policy,
environmental policy and instructions, such as
authorization instructions, manuals and a reporting
handbook.
Financial policy
The Group’s finance function works according
to an instruction given by the Board which sets
out frameworks for how the Group’s operations
shall be financed and how, for example, currency
risks and interest rate risks shall be dealt with.
IT policy
The Group’s IT policy describes the Group’s
principles for application and safety within IT.
Communication policy
The Group’s communication policy is a document
that describes the Group’s general principles for
providing information.
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