Risk Management and Audit
Aperam takes its responsibilities to shareholders, employees and the wider communities in which it works extremely seriously, and has measures in place to ensure compliance with regulations and best practice regarding internal control, risk management, audit and whistle-blowing.
Management is responsible for internal control in the Company and it has implemented a risk management and control system, which is designed to ensure its business is focused on achieving its objectives and that significant risks are identified and mitigated to the extent possible. The system is also designed to ensure compliance with relevant laws and regulations.
The Company’s risk management and internal control system is designed to determine risks in relation to the achievement of business objectives and appropriate risk responses. This includes management reviews, reviews of the design and implementation of the Company’s risk management approach and business and functional Audit and Risk Management Committee. Based on those reviews, the management provides assessments of the effectiveness of the company’s internal control structure and the procedures for financial reporting.
It should be noted, however, that the above does not imply that these systems and procedures provide certainty as to the realisation of operational and financial business objectives, nor can they prevent all misstatements, inaccuracies, errors, fraud and non-compliance with rules and regulations.
As part of its commitment to sound corporate governance, Aperam has set up a process of risk identification and management. These risks include but are not limited to financial, legal and operational risk and risks concerning Aperam’s reputation and ethical standards. The Board’s Audit and Risk Management Committee (ARMC) assists the Board of Directors with the identification and management of risks to which the Aperam group is exposed. The Leadership Team’s Risk Management Committee (RMC) has oversight at executive management level. The RMC assists the Board in the monitoring and review of the group’s risk-management framework and process.
The Audit and Risk Management Committee is composed of three independent directors, appointed by the Board of Directors. The committee serves as an independent and objective party to monitor the company’s financial reporting process and internal control system.
Its primary function is to assist the Board of Directors in fulfilling its oversight responsibilities by reviewing the financial reports and other financial information provided by the company to any governmental body or the public; the system of internal control regarding finance, accounting, legal compliance and ethics; and the company’s auditing, accounting and financial reporting processes generally. It also reviews and appraises the audit efforts of the company’s independent accountants and internal auditing.
Aperam has an established procedure for whistleblowing, including a whistleblowing policy, which all its employees and all other stakeholders can access. If they have an issue they feel they can’t raise with their line manager or with local management, they can use the whistleblowing process to report it.