BAM Abbreviated Annual Report 2011 - Siteseeing in the world of ...

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2011
Further intensifying of risk management
Risk management is a dynamic process, keeping up with
strategic objectives, customer demands and new
activities in a changing, complex and competitive
environment.
A further intensifying of BAM’s risk management is one of
the Group’s key focus areas, as stated in the strategy
update when the Q3 2011 quarterly figures were
announced. BAM is tightening up risk management as
follows:
• BAM has created a risk management position at Group
level to facilitate further intensifying of the risk
management systems and to complement the
activities currently being carried out by the Group’s
operating companies.
• BAM has introduced a uniform assessment method in
which risks and potential for improvement are
identified. This instrument will be embedded in the
system as part of the general control measures.
• There will be further Group-wide focus on risk
management in the primary process as a result of
increasing complexity and competition. Best practices
will be developed and shared in order to improve the
primary process related project selection, acquisition,
implementation and a continued culture of
improvement.
• Finally, there will be focus in the primary process on
benefiting from the development of accompanying
employee competences and skills in this changing
environment.
Assessment of risk management and control systems
The risk management and control systems operated
properly during the year under review and no
shortcomings were found in these systems or how they
operated that might have material consequences in the
2011 financial year or the current financial year. It is
therefore reasonable to conclude that there are no
indications that the risk management and risk control
systems will not work properly in the 2012 financial year.
No significant changes in these systems are planned,
apart from further intensifying of risk management as
described above. The Group cannot guarantee that no
risks will present themselves, and the risk management
and control systems do need further improvements.
Optimising internal risk management and control systems
remains an important issue for the Executive Board and it
may result in the systems being improved or expanded.
The aforementioned optimisation of risk management is
an example.
Based on the above statements, the Executive Board
considers, as regards the financial reporting risks, that
the internal systems intended for managing and
controlling risks provide a reasonable degree of
assurance that the financial reports do not contain any
material misstatements. The Executive Board further
states that this section on the subject of risk was
discussed with the Audit Committee and the Supervisory
Board.