Corporate Social Responsibility Report 2014
BME has a risk management system in place which
ensures that any significant risks which could affect
the Group’s objectives and activities are identified,
evaluated and controlled as described in BME’s Annual
Corporate Governance Report.
The Risk Committee, the Internal Audit Department
and the Compliance Department assist the Board of
Directors and the Audit Committee in developing a
suitable risk management programme.
under the helm of the General
Manager, reports to the Coordination Committee.
These two units work together to implement the risk
control and management policy laid down by the
Board of Directors. The committee monitors and
analyses the risks arising in the day-to-day activities of
BME group companies.
The Risk Committee has created an integrated risk
management system (IRMS) following the method-
ological framework specified in the COSO II paper. It
also maintains the Corporate Risk Map, in close coop-
eration with the business units and corporate areas.
In addition to the IRMS, the
formally incorporated the Internal Control over Finan-
cial Reporting (ICFR) system. A description of the IRMS,
including the ICFR, is available in the Annual Corporate
Governance Report for 2014.
At its meeting of 29 November 2012, the Board of
Directors resolved to set up a Penalty Prevention
System, as described in Chapter 3 of this report. The
system is being gradually implemented throughout
Internal Audit Department
is charged with
providing senior management and the board with
information that enables them to fulfil the company’s
objectives, including the assessment and evaluation
of the efficiency of the risk assessment tasks carried
out. Its task is therefore aimed at assessing and
improving the efficiency of the processes concerning
risk management, control and governance by identi-
fying key risks and controls.
In order to create an independent body that could
monitor compliance with the regulations governing
the activities of BME and its group companies, in 2013
the Executive Committee approved the formation of
ance Department’s primary duties include super-
vising compliance with prevailing regulations, codes
of conduct and commercial agreements; verifying
the suitability of procedures and compliance there-
with; supporting the Audit Committee in supervising
regulatory compliance risk; and helping employees to
monitor regulatory changes that could affect the activ-
ities carried out by the Group.