Internal Control and Risk Management
Welltec’s Management is responsible for establishing and maintaining adequate internal control over financial reporting.
At Welltec, internal control over financial reporting and risk management is based on the risk and control structure established in Enterprise Risk Management - Integrated Framework issued in 2004 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), in the United States. The Framework’s purpose is to help business develop more comprehensive approaches to identifying and managing risk.
With the assistance of external experts, all Welltec key business processes were reviewed and designed according to the risk and control structure suggested by the COSO framework. We expect to finalize implementation in the first half of 2007 and will make enhancements on an on-going basis.
The Board of Directors monitors the financial risks and the internal control system, including internal accounting and financial reporting controls, through its Audit Committee, which consists of independent Directors.
The Board of Directors also assesses on an on-going basis the strategic, operational and compliance risks connected with Welltec’s activities. The Board adopts policies and procedures for key risk areas. It monitors and secures the plans for management of the identified risks and pays particular attention to Quality, Health, Safety, Environmental and financial activities.
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