Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 44Information management and security measuresWavin’s ability to provide customers with products and services and manage operations continuouslydepends on the uninterrupted operation of IT systems. The Wavin activities increasingly operate acrossborders and across business functions. This requires a uniform and consistent exchange of information.To enable this, Wavin developed a common information system (SAP) that is gradually implementedthroughout the company.Governance structure for monitoring the functioning of the IT systems and to respond to developmentrequirements and extensions to the systems are in place. Technical and infrastructural IT standards toenable information systems to communicate internally and with our trading partners are mandatory.Systems, standards and IT performance are monitored and reviewed quarterly by the IT SteeringCommittee under the supervision of the Chief Financial Offi cer. The results are shared with theAudit & Investment Committee of the Supervisory Board annually.TaxWavin has an enforcement covenant with the Dutch tax authorities as part of the ‘horizontal supervision’project initiated by the Dutch Ministry of Finance on the basis of which existing cooperation is furtherenhanced. This results in an intensive exchange of information and preliminary consultations on matterswith potentially material tax consequences. This form of cooperation fi ts within Wavin’s policy on riskmanagement in respect of taxation. In the other jurisdictions in which Wavin operates the companypursues, where possible, a proactive policy in order to minimise any uncertainties regarding the taxpositions.InsuranceWavin has underwritten a general insurance programme to cover risks that may occur despite adequaterisk control measures, Wavin has an in-house insurance company for this purpose, Wavin AssurantieB.V., which insures major operating risks with independent insurance companies. Wavin Assurantieworks together with independent insurance brokers and providers of insurance-related services.The policies cover risks resulting from property damage, business interruption, or third-party liabilityincluding product liability and a number of other specifi c risks.Audit & Investment CommitteeThe Audit & Investment Committee, which consists of three members of the Supervisory Board,independently monitors the process of risk management on the basis of the supervisory role of theSupervisory Board. The aspects on which the Audit & Investment Committee focuses include the qualityof internal and external reporting, the effectiveness of internal controls and the functioning of the externalauditor. The Audit & Investment Committee meets three times a year. The CFO, relevant fi nancial offi cersand the external auditor are invited to attend those meetings. Please see page 69 for more informationabout the Audit & Investment Committee.Role of the external auditorThe external auditor carries out the requisite activities for the issue of an auditor’s report accompanyingthe fi nancial statements. The external auditor focuses on the fi nancial reporting, but also assesses theaccounting principles that have been applied and the adequacy of the internal controls to ensure thatthe fi nancial statements are free of material misstatements. The audit report and management letterhave been discussed with the Audit & Investment Committee and have been presented to theSupervisory Board.Letter of RepresentationEach year all operating company managing directors and fi nancial directors sign a detailed statementwith regard to fi nancial reporting, internal controls and ethical principles. Any observations made inthis statement are reported to and discussed with the Management Board and the Audit Committee.