Int ernal Control P ro vide s As surance Securit as internal control sys tem is designed to mana g e r ather than eliminate the risk of failin g to achie v e business objectiv es The sys tem pro vides reason able but not absolute assur ance a gains t material miss t atement or loss Control en vironment The k e y features of the control en vironment include the clear terms of reference for the Boar d and each of its commit tees a clear or ganizational s tructure with documented dele gation of authorit y from the Boar d to President and CEO and further to Group M ana g ement the competence of emplo y ees and a series of Group policies procedures and fr amew orks The Group oper ates in a fat and decentr aliz ed or ganization where mana g er s are g iv en clear objectiv es and authoriz ed to mak e their o wn deci sions and de v elop their oper ations tog ether with the cus tomer s F or more inf ormation on the man agement model ref er t o page s 4851 Dele gation of authorit y is documented in an appro v al matrix which pro vides clear directions for mana g er s at all le v els Emphasis lies on the competence and abilities of the Group s emplo y ees with continuin g educa tion tr ainin g and de v elopment activ ely encour a g ed throug h a wide v ariet y of schemes and progr ams The Group has three fundament al v alues Inte grit y V ig ilance and Helpfulness to help its emplo y ees e x ercise g ood jud gment and mak e decisions on a consis tent basis The Group s ma jor fnancial policies procedures and fr amew orks include a comprehensiv e manual Group policies and guidelines a reportin g manual and Securit as model for fnancial control for more det ailed information on the model refer to pa g es 5051 These are all periodically re view ed and updated Risk assessment At the hig hes t le v el the Boar d consider s where future s tr ate g ic opportunities and risks lie and helps shape the corpor ate s tr ate gy A balanced and focused risk mana g ement is necessar y for the fulfllment of Securit as s tr ate g ies and the achie v ement of its corpor ate objectiv es Enterprise risk mana g ement ERM is an inte gr al component of Securit as oper ations and risk a w areness is part of the compan y culture The ERM process is described on the follo win g pa g e Account abilit y for mana g in g risks is clearly assigned to Group divisional and local mana g ements Group M ana g ement has the da y toda y responsi bilit y for the identifcation e v aluation and mana g e ment of risks and for the implement ation and maintenance of control sys tems in accor dance with the Boar d s policies Specifcally divisional mana g e ment and es t ablished functional commit tees are responsible for ensurin g that a process for creatin g risk a w areness e xis ts throug hout the division The divisional presidents are responsible for all aspects of the oper ations in their divisions includin g oper a tional risk mana g ement and risk minimization Oper atin g unit mana g er s and countr y risk man a g er s are responsible for ensurin g that risk mana g e ment is part of the local corpor ate culture at all le v els within a countr y T o be successful all of Securit as br anch mana g er s mus t under s t and the risks associated with pro vidin g ser vices and be able to assess and control these risks Securit as w orks activ ely with diferent risk mana g ement activities to increase a w areness and kno wled g e RISK RE SP ONSIBILITIE S Principal activities Br anch area Countr y division Group Risk assessment Contr act mana g ement Loss pre v ention Claims set tlement Insur ance purchasin g Procedures are in place to ensure that signifcant risks and control failures are con v e y ed to Group M ana g ement and the Boar d as required on a periodic basis 40 Securit as Annual R eport 2012 G o v ernance and mana g ement Boar d of Director s report on corpor ate g o v ernance and internal control