Interne Kontrolle

The Board is responsible for Rotork’s system of risk management and internal control and the Board’s review of the system’s effectiveness is completed with the assistance of the Audit Committee.

During 2018, the Board regularly reviewed the effectiveness of the Group’s risk management and internal control systems. Further details of reports undertaken and reviewed are set out in the Audit Committee report on pages 62 and 63 of the Annual report.

The systems which were in place for the year under review, and up to the date of approval of the report, are in accordance with the Code and the FRC Guidance on Risk Management, Internal Control and Related Financial and Business Reporting.

Main features of the Group’s internal control systems

All members of the Board receive Audit Committee papers and prior meeting minutes, which contain the Audit Committee’s assessment of the effectiveness of the Group’s risk management and internal control systems. All non-executive directors are members of the Audit Committee and the executive directors attend Audit Committee meetings.

Key elements of the framework which enables Rotork to respond appropriately to financial, operational, compliance and any other risks, include:

  • Group wide policies and procedures, including authority levels and division of responsibilities;
  • Training of staff on policies and procedures relevant to their roles;
  • Ongoing monitoring of business performance, Key Risk Indicators and levels of compliance with procedures;
  • A formal schedule of reserved matters for the Board, including responsibility for reviewing Group strategy;
  • A formal whistleblowing policy with an external whistleblowing hotline;
  • Robust assurance processes and controls over financial reporting and health and safety procedures;
  • Regular controls confirmations from the business.

Throughout 2018, the arrangement with PwC to provide internal audit services has continued, with the function being led by an experienced Head of Risk and Internal Audit from PwC.