2012 Sustainability selection - SBM Offshore

3.6.3 Internal Control and Risk Management
The Dutch Corporate Governance Code, under section II.1.4, requires that the Management Board examines
strategic, operational, legal and regulatory, and financial reporting risks. The Management Board confirms that it
is responsible for the Group’s risk management and internal control systems and has performed reviews of their
operational effectiveness for the year ended 31 December 2012. The outcome of these reviews and analysis as
well as planned improvements for 2013, has been shared with the Audit Committee and the Supervisory Board
and has been discussed with the Group’s external auditors.
The Group’s structure with respect to Internal Assurance and the interactions between the key players is
summarised in the “three lines of defence” model presented below.
The Group tested compliance with its key controls in the fields of proposals, financial reporting, information
systems, HSSE, quality assurance, tax, technical assurance and legal due diligence with satisfactory overall
results.
In respect of financial reporting, the Management Board considers that:
• Risk management systems and internal control measures provide reasonable assurance that financial reports do not
contain any material inaccuracies.
• There are no indications that risk management systems and internal control measures did not work properly in 2012.
The statements above do not imply that the Group can provide certainty concerning the realisation of business
and financial strategic objectives or that its approach to internal control over financial reporting be expected to
prevent or detect all misstatements, errors, fraud or violation of law or regulations. In respect of the major
impairment charges incurred in 2011 and 2012, financial reporting was based upon the best operational
information available throughout the year and was promptly communicated. In respect of the investigation into
potentially improper sales practices, investigations are ongoing and no conclusions or updates are available as of
the date of this report.
In view of the above, the Management Board believes that it is in compliance with the requirements of II.1.4 of the
Dutch Corporate Governance Code taking into account the recommendations of the Corporate Governance
Monitoring Committee and the recent best practice provisions of the Amended Code.