Tokmanni Group Corporation’s risk management is guided by the risk management policy approved by the Board of Directors of Tokmanni Group. The purpose of Tokmanni Group’s risk management is to support the Group’s values and strategy and the continuity of its business operations by identifying, measuring, managing, and monitoring any risks associated with its operations. The goal is to assess risks systematically to encourage thorough planning and decision-making.

In Tokmanni Group, risk management is a proactive and essential part of day-to-day management to assess and manage opportunities and threats related to business operations. The Executive Team of Tokmanni Group is responsible for the practical implementation of risk management. Risks are assessed regularly and managed comprehensively. The risks of Tokmanni Group Corporation are reviewed annually by the Finance and Audit Committee of Tokmanni Group’s Board of Directors. The Chairman of the Finance and Audit Committee reports on risk management to the Board of Directors on a regular basis. The Board of Directors reports the key risks and factors of uncertainty to the markets in the Board of Directors’ Report and communicates material changes to them in the Group’s business review and half-year financial report.

Internal control is an essential part of Tokmanni Group’s governance and management system. Tokmanni Group Corporation’s Board of Directors, management and personnel participate in internal control. The purpose of internal control is to help ensure the achievement of the Group’s goals. The Group’s internal auditor is responsible for internal auditing. Administratively, the auditor reports to the Group’s CFO. However, in matters related to internal auditing, the auditor reports to the Finance and Audit Committee. The purpose of internal auditing is to monitor and verify that the company’s business operations are efficiently managed and profitable, that risk management is at an adequate level and that the external and internal reporting produced is accurate and appropriate.

In its external financial reporting, Tokmanni Group complies with the disclosure policy approved by the Group’s Board of Directors. The company aims to produce and publish reliable information in a timely manner. The principle of the disclosure of information is to ensure that all market participants have equal, equitable and simultaneous access to information on Tokmanni Group’s financial instruments, such as shares, to form the basis of price formation.

Risk management at Tokmanni Group has the following targets:

• Stressing the importance of risk awareness and proactive risk management;
• Maintaining the company’s competitiveness and gaining a competitive edge;
• Ensuring sufficient risk management at Group level in line with risk tolerance and risk appetite;
• Managing risks as part of business operations, planning and decision-making in line with predetermined duties and responsibilities.

Communications

To ensure an efficient and well-functioning internal control environment, Tokmanni Group seeks to ensure the adequacy, openness, transparency, accuracy and timeliness of its internal and external communications. Information about internal tools for financial reporting – such as the accounting principles and the guidelines and disclosure policy concerning financial reporting – is available on Tokmanni’s intranet. Tokmanni Group provides its employees with the necessary training on matters related to internal control and the use of internal control tools. In so doing, company clearly communicates to its employees that the responsibilities related to internal control are taken seriously.

Employees can communicate suspected misconduct via a whistle blower channel that secures anonymous reporting or directly to the Compliance function.

Tokmanni Group CFO and the person in charge of internal auditing regularly report to the Finance and Audit Committee on the results of the work related to internal control. Possible observations, recommendations and proposed decisions and measures arising from the work of the Finance and Audit Committee are reported to the Board of Directors after each committee meeting.

Monitoring

functionality of internal control, risk management and reporting systems is monitored continuously as part of the company’s day-to-day management of Tokmanni Group. The Group’s financial department monitors the functionality and reliability of the reporting processes across the Group. The financial reporting processes also fall within the internal audit unit’s sphere of monitoring.