内部控制

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

During 2019 the Board and Audit Committee regularly considered matters relating to 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 76, 77 and 78 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 Board members receive Audit Committee papers and meeting minutes, which contain the Audit Committee’s annual review of the 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 Chairman and executive directors attend Audit Committee meetings.

Key elements of the control environment, which enables Rotork to respond appropriately to all types of business risks, include:

  • The Rotork Values and behaviours launched this year as part of defining One Rotork
  • A Code of Conduct launched this year, supported by 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
  • A formal schedule of reserved matters for the Board, including responsibility for reviewing Group strategy
  • A formal whistleblowing policy with an external whistleblowing hotline.
  • Defined controls and assurance processes over financial reporting and health and safety procedures