Internal control system (ICS) and risk management

Since 1 January 2008, Swiss companies must be able to demonstrate that they have an internal control system (ICS). Komax successfully adapted its existing ICS to the new legal requirements and integrated all its subsidiaries, both in Switzerland and abroad, into company-wide controls. As a result, the Group can now identify risks promptly and easily.

With the ICS, Komax has standardized and clearly documented its internal control processes, thus allowing its auditors to confirm the existence of an ICS. All documentation and the associated control data are systematically filed. The documents are fully traceable and can be checked at any time. The associated guidelines are binding on all subsidiaries in Switzerland and abroad. Komax also uses internal controls to ensure that the guidelines are observed and controls are carried out in accordance with the system rules.

The main focal points of the Komax ICS are financial reporting, human resources management, information technology (IT) and risk management. The financial reporting element focuses primarily on the completeness, accuracy and evaluation of the year-end accounts process and compliance with IFRS accounting principles. HR and IT processes with a financial impact are also incorporated into the ICS.

During the year under review, Komax expanded its existing risk management framework and rolled it out to all larger subsidiaries. Today, risk management is a key element of the Komax Group’s internal control system, encompassing the systematic recording of risks in corporate governance, IT, operational activities and finance and accounting. As far as possible, the annual risk management meetings held in Switzerland and abroad are attended by different groups of individuals in rotation. Thanks to the successful implementation of the ICS and risk management framework, Komax can now assess risks accurately and undertake the necessary corrective action at an early stage.