This section describes Securit as view of g o v ernance and ho w the top la y er s of the g o v ernance s tructure interrelate in or der to achie v e efectiv e g o v ernance This includes such components as g o v ernin g policies s tr ate g ic decisionmakin g and the de v elopment of fr amew orks Compliance with the S w edish Corpor ate G o v ernance Code the Code The section prepared in accor dance with Chapter 6 Section 6 of the S w edish Annual Accounts Act pro vides k e y information concernin g compliance with the S w edish Corpor ate G o v er nance Code shareholder s the Annual G ener al M eetin g Nomination Commit tee Boar d of Director s and their w ork includin g commit tees remuner ation and the division of responsibilities throug hout the g o v ernance s tructure This section also co v er s Securit as sys tem of internal control and risk mana g ement is also co v ered which is the responsibilit y of the Boar d of Director s accor din g to the S w edish Companies Act and the S w edish Corpor ate G o v ernance Code This description does not form part of the Annual R eport In the Internal control section pert ainin g to risk w e ha v e opted to widen the scope of our description and e xplain ho w enterprise risk mana g ement w orks in the broader per spectiv e re gar dless of the t ype of risk which means that our focus is not confned to risk related to internal controls o v er fnancial reportin g F ulfllin g our s tr ate g ies and objectiv es while maint ainin g appropriate risk le v el is imper ativ e which is wh y risk man a g ement procedures span all le v els of the or ganization This section also describes our v arious risk cate g ories and risks requirin g hig hle v el mana g ement at tention includin g ho w the y are mana g ed Securit as mana g ement model is described in this section The model called th e T oolbo x con v e ys our corpor ate culture and creates a shared platform which ensures that Securit as v alues w ork methods and mana g ement philosoph y are shared throug h out the or ganization This section also cont ains further det ails about the fnancial model which is specifcally t ailored to Securit as business and is centr al to oper ational mana g ement The model focuses on the oper ational factor s that impact proft and cash fo w thus makin g fnancial per formance more tr ansparent for oper ational mana g er s The section ends with a present ation of Group M ana g ement which assumes responsibilit y for oper ational mana g ement and carries out the a greed s tr ate g ies Corporat e Go v ernance 33 Signifcant shareholder s 33 Annual G ener al M eetin g 33 Nomination Commit tee 33 Compliance with the Code 34 Boar d and Audit Commit tee 35 F acts on Boar d of Director s 36 R emuner ation Commit tee 38 Auditor s 39 Internal control and enterprise risk mana g ement 40 Or ganization of internal control 46 Auditor s report on Corpor ate G o v ernance St atement 47 Operational Management 48 Securit as mana g ement model T oolbo x 48 Securit as fnancial model Six Fin g er s 50 F acts on Group M ana g ement 52 Go v ernance and Management R ead more at www securit as com corpor ate g o v ernance Securit as has published its principles for corpor ate g o v ernance in pre vious annual reports A separ ate section on the Group w ebsite cont ains the Articles of Association and other k e y compan y documents Securit as Annual R eport 2012 32 G o v ernance and mana g ement Introduction