In Metsä Group, internal control covers financial reporting and other monitoring. Internal control is implemented by the Board and the acting management, as well as the entire personnel. Internal monitoring refers to that part of management which aims to ensure:
- achievement of the goals and objectives set for Metsä Group
- economical, appropriate and efficient use of resources
- adequate management of operation-related risks
- reliable and correct financial and other management information
- adherence to external regulations and internal policies
- adherence to appropriate procedures related to customer relationships
- sufficient security of operations, information and property, and
- the arrangement of adequate and suitable manual and IT systems to support operations
Proactive control
Proactive control includes the specification of Metsä Group's values, general operational and business principles as well as goals and strategy. Metsä Group's corporate culture, governance and the approach to control together create the basis for the entire process of internal control.
Daily control
Daily control refers to general control and follow-up, with operational systems and work guidelines, related to operational steering. Examples include the specification of personnel responsibilities and authority, identifying high-risk assignments, job descriptions, approval authority and deputy procedures.
Subsequent control
Subsequent control refers to monitoring and check-up measures, such as different management evaluations and inspections, comparisons and verifications, the aim of which is to ensure that the goals are met and that the agreed operational and control principles are followed.
Monitoring of the financial reporting process, credit control and authorisation rights
The financial organisations of the business areas and the Group are responsible for financial reporting. The units and business areas report the financial figures each month. Business area controllers check the monthly performance of units from each business area and report them further to the Group financial administration. Business area profitability development and business risks and opportunities are discussed monthly by Metsä Group Executive Management Team meetings attended by the senior management of Metsä Group and of each business area, and by financial management team meetings attended by the Group CFO and Director of Finance and the CFO of each business area. The results are reported to the Board of Directors of Metsäliitto Cooperative each month. The results of the business areas are additionally reported to the Boards of Directors of their parent companies each month. Metsä Group's Controllers' Manual describes the reporting and control regulations and the reporting procedure in detail.
Credit control in Metsä Group is carried out by each business area in accordance with the Group credit control policy and the business area-specific credit control policy based on it. Credit control is carried out by the Group's central credit control organisation in cooperation with the management of the business areas.
Authorisation rights concerning expenses, significant contracts and investments have been continuously specified for different organisation levels, according to the decision-making order confirmed by the Board and the authority separately granted by the President and CEO and other management personnel.
Investment approval and follow-up is carried out by the Group's financial administration according to the investment policy confirmed by the Board. After pre-approval, investments are taken to the management teams of the business areas within the framework of the annual investment plan. Most significant investments are separately submitted for approval by the Executive Management Team and the Boards of the Group's parent company, and of the parent company of the business area.