Internal control and risk management make sure that the Reka Industrial's operations are as effective and profitable as possible, and that the information that it provides is trustworthy and that regulations and operating principles are followed.
The Board of Directors has the highest responsibility of monitoring accounting and capital management in the company. The CEO is responsible for organizing the controlling system and risk management in practice. The company's financial situation and development is monitored on a monthly basis, and the information is published in annual and interim reports. A more detailed description of the company's internal control and risk management is included in the company's separate Corporate Governance Statement.
The company's Board of Directors has established an Audit Committee for the Group's internal control and audit. The committee reports to the Board. An operative internal audit is mainly carried out by the company's own organization, and third party experts are used on a project basis.
Risks and risk management
Reka Industrial's financial risks include currency, interest rate, commodity, liquidity, credit and investment market risks. Financial risks and protection measures are described in more detail in notes to the financial statements. The company’s future risk factors are related to the development of its business segments.
In the Cable segment, the most significant risks are related to market development, fluctuations of raw material prices and currencies as well as working capital management in various situations. During considerable seasonal fluctuations, suppliers' terms of payment affect on the ability to ensure competitive times through sufficient inventories. Through developing of the production processes the impact of the fluctuations in the factories' workload is being mitigated.
In 2022 Reka Industrial ́s Audit Committee reviewed business risks, balance sheet values, financing and liquidity, and the effect of business acquisitions on reporting. The management of internal audit measures focused on ensuring continuity and managing process and ICT risks.