Risk assessment
Corio has a structured, pro-active risk management system. A risk and control framework has been developed, based on the guidance of the Committee of Sponsoring Organisations of the Treadway Commission (COSO). This framework focuses on the material strategic, operational, compliance and financial reporting risks. Using this framework, the existing business units and the holding company go through a systematic process each year of identifying and evaluating risks and controls and, where necessary, improving the way in which risks are managed. This process resulted in internal risk reports which were discussed with the relevant business unit management before the final reports were published for the holding company. Each year, business unit management signs a letter of representation. In addition to financial reporting statements, the letter of representation contains statements regarding risk management, integrity and compliance with the code of conduct, statutory provisions and other rules and regulations. A joint letter of representation is issued by the aforementioned holding company functions as well. The above processes make the risks and the areas requiring improvement in the internal control systems transparent. It is, however, always possible for circumstances to arise in which unidentified risks become apparent or in which the impact of identified risks becomes greater than originally estimated. The following sections describe the main risks and control measures relating to each COSO risk category.
Source: Annual Report 2008, Chapter Corporate governance, page 129 (PDF, 72 kB)
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