Internal Control and Risk Management

Technopolis´ Board of Directors is responsible for ensuring that the principles of internal control are defined and that the efficiency of internal control is monitored on a regular basis. The Board is responsible for supervision and ensuring that the CEO reports to the Board on the company´s business operations and management in accordance with the orders and instructions given. The CEO is in charge of the practical arrangements of internal control and ensures that the control is organized in an appropriate manner.

The Technopolis Group has an internal control organization for processes, supervised by the executive management. Representatives for this organization have been selected from among personnel of different areas of business and regionally from different units.

The tasks of the organization include:

- Monitoring adherence to uniform operating principles confirmed by the management in all core processes and in the support and management processes of Technopolis' business.

- Identifying and compiling development areas in operations in an audit.

Responsibility for financial reporting in accordance with external accounting requirements and for generating internal financial reporting for business operations rests with the Group´s financial management under the supervision of the Chief Financial Officer.  The management of each business unit, together with the controller organization under the supervision of the Chief Financial Officer, is responsible for producing financial forecasts.

On the Group level, financial development is monitored through uniform reporting in all segments and their regional units on a monthly basis. The controller organization analyzes actual development against forecasts and provides reports on deviations.

Controlling matters requiring special financial expertise such as calculating the fair value of investment properties and pending construction projects as well as controlling foreign investments, is carried out in close collaboration with external specialists.

Technopolis' most significant risks are those associated with financing and customers as well as risks in business operations in Russia. The company´s Board of Directors is responsible for proper organization of the Group´s risk management. The Board of Directors decides on the strategy and on most significant investments.

Risk management of business operations is described as part of the management processes and is hence subject to internal control of processes.