Oper ational M ana g ement (countr y / re g ion, br anch mana g er) F unctional Commit t ee s The Group has es t ablished a number of func- tional commit tees and w ork groups, includin g the functions for Finance / T ax and Assur ance , Corpor ate Finance / T reasur y and Le gal / Risk and Insur ance . These commit tees include the Senior V ice President Finance , Senior V ice President Corpor ate Finance , Senior V ice President G ener al Counsel and the appropriate functional area e xperts. The main purpose of these functional commit tees is to determine appropriate policies, communicate the policies and ensure local under s t andin g (includin g tr ainin g ) of the policies, as w ell as monitorin g k e y issues within each area of responsibilit y . Quarterly meetin g s are held with the President and CEO , at which topic s that mus t be reported to the Audit Commit tee are discussed. P re sident and CE O and Group Management The President and CEO and Group M ana g ement re views per formance throug h a comprehensiv e reportin g sys tem based on an annual bud g et , with re gular business re views of actual results, analysis of v ariances, k e y per formance indica- tor s (Securit as ’ model for fnancial control, refer to pa g es 50–51, adapted b y division) and re gular forecas tin g. This reportin g is also re view ed b y the Boar d. Group legal function The le gal function is responsible for maint ainin g an adequate infr as tructure to ensure that le gal mat ter s are broug ht to the at tention of Group M ana g ement in an appropriate and timely manner . This function is headed b y the Senior V ice President G ener al Counsel. The le gal function also monitor s and mana g es le gal risk e xposures identifed b y the oper atin g units and reports re gularly to Group M ana g ement and Audit Commit tee on le gal risks and on g oin g disputes. L ocal and Divisional Management re sponsibilitie s Since Securit as ’ philosoph y is to w ork in a decentr aliz ed en vironment , local mana g ement is primarily responsible for monitorin g and ensurin g compliance b y local units with the Group policies and guidelines appro v ed b y the Boar d of Director s, includin g an y division-specifc policies and guide - lines. Local mana g ement is responsible for the es t ablish - ment and continued oper ations of a sys tem of procedures and controls that ensures the reliabilit y of the compan y’ s mana g ement and fnancial reportin g information in the mos t economical and efcient manner possible . This includes ensurin g a minimum of basic and super visor y controls in or der to mitigate rele v ant risks. Local mana g ement reports to Group M ana g ement throug h Divisional M ana g ement on oper ational mat ter s and local controller s report throug h Divi- sional Controller s on fnancial reportin g mat ter s. In or der for this to w ork, Securit as has es t ablished a close link bet w een these diferent le v els of the or ganization. Group risk organiz ation The Group risk or ganization is responsible for pro vidin g the oper ational or ganization with opportunities to identif y and mana g e the risks inher - ent in Securit as ’ line of busi- ness. Risk mana g ement is an inte gr al part of the Securit as culture and is imper ativ e for achie vin g Securit as ’ s tr ate- g ies and g oals. The risk man - a g ement process is continu- ously e v olvin g. Or ganization of internal control Shareholder s C FO Divisional M ana g ement Divisional controller s Local controller s External audit Division auditor External audit Local auditor S VP Finance Group M ana g ement S VP G ener al Counsel Audit Commit tee Group le gal Group risk or ganization Boar d of Director s Direct line of reportin g Coor dination responsibilit y 1. Owner ship of risk 2. A s tron g controller or ganization 3. M onitorin g of internal control 4. Audit Group activities Divisional activities Local activities Risk and control dia gnos tic s per formed b y e xternal parties External audit Group auditor President and CEO F unctional Commit tees M ana g ement Assur ance function for monitorin g internal control M onitorin g M onitorin g is per formed at diferent le v els and b y diferent functions within the or ganization. K e y functions include the Boar d of Director s, the Audit Commit tee , Group M ana g ement , functional commit tees, mana g ement assur ance , the Group le gal function, the Group risk or ganization and Local and Divisional M ana g ements. 46 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