Risks and risk management

Ratos conducts an annual structured risk review in which material risks are identified, assessed and managed, both at group level and within each individual portfolio company. The process is complemented by an assurance mapping exercise that clarifies accountability and validates internal processes.

Each portfolio company is operationally responsible for its own risk management, supported by Ratos through models and methodology. The ambition is to build independent organisations with a high standard of reporting quality.

Internal control over financial reporting is based on a clear control environment with documented decision-making processes, authorisations and policies. All companies report complete monthly accounts in a shared group reporting system, in accordance with IFRS.

Ratos's finance function continuously reviews and develops the quality of the companies' accounting and reporting. Submissions are evaluated from an analytical perspective with regard to completeness, reasonableness and compliance with Ratos's accounting policies. Any discrepancies are corrected and communicated monthly to the CEO and CFO, who report further to the Board as required.

Significant transactions, acquisitions and material accounting matters are regularly reviewed with Ratos's auditors. The Board monitors internal control and the reliability of financial reporting through the Audit Committee.