consolidated annual report - Gruppo Banca Sella

aim of improving the distribution of tasks and responsi-
bilities, at the same time fixing the strengthening of the
relevant structures.
The new layout was set up during 2004 and will be
accomplished in 2005.
During the year, also, the analysis of the “Control
Process” was completed: this is an organizational and
operative instrument, which shall allow for a more efficient
synergy among the structures in charge of internal
controls and shall guarantee both a higher sensibility as
to early warning awareness and a higher precision as to
follow-up activities.
During 2005 the technological platform relevant to
this activities shall be built and distributed.
The organizational structure follows the specific provisions
of the Central Regulatory Authority and subdivides
controls into three different levels:
1. Line controls: these controls are carried out to check
the correctness of daily activity by each operational
units or are incorporated in procedures and therefore
performed within back office activities;
2. Risk management controls: these are carried out by
units independent from production functions, with
the aim of contributing to the identification of methods
for the measurement of risk, to control the respect
of limits given to the various operative functions and
to check that activity of each single production area
be compliant with the fixed risk/yield profiles;
3. Group internal auditing controls: these aim at
identifying anomalous trends, breach of procedures
and regulations, and at evaluating the efficiency of
the internal controls system on the whole.
Control functions are directly operated by the Parent
company Finanziaria Bansel (servicing for Gruppo
Banca Sella), as well as by each single subsidiary,
according to their size and type of activity, assuring
prompt reporting to the Parent company of the activities
carried out.
The main operative mechanism of coordination is
the Audit Committee (active from the second quarter of
2005) made up by independent Directors of the Parent
company Board of Directors; the Parent company in turn
186 - GRUPPO BANCA SELLA
assists the latter in its control activity.
The Committee has preparing, consulting and proposing
functions, and coordinates the Internal Auditing
activity, the person in charge of which reports to the
Committee.
The activity of the Audit Committee has the aim of:
• analysing the periodical reports on control systems
expressing its evaluations;
• suggesting the guidelines for more adequate organization
and provisions;
• requesting verifications on the adequacy of organization;
• analysing the adequacy of follow-up to the prompt
and efficient execution of any corrective action necessary
to remove anomalies;
• evaluating the processes for the drawing up of the financial
statements of subsidiaries.
1. Line controls (First level controls)
This type of controls is generally managed by each
single operative unit, because each control is deemed
functional to the correct carrying out of daily activities of
each subsidiary.
Since January 2004 all companies of the Group have
been enabled to use a special telematic procedure, allowing
for the identification of controls, for their assignement
to business units in charge for their execution and for the
attesting (i.e. make a certified control) of their execution.
Such procedure also allows for the centralized control of
the state of monitoring on each single activity, as well as
for an easy diffusion of best practices related to controls
inside the Group and from one service to another.
2. Risk management controls (Second level controls)
The task to perform this type of controls is wholly
entrusted to the Group Risk Management Service, which
is therefore responsible for the punctual and perspective
controls on the various risks to which subsidiaries might
be exposed according to their activity. It has the responsibility
to acquire all data and information to be used
in risk measurement and control, constantly reporting
to the top management on the situations which might