Internal control and risk management

Legal compliance is essential for the corporations belonging to the Amalgamation of Savings Banks. The Amalgamation of Savings Banks complies with all relevant laws and regulations in the jurisdictions it operates in.

The risk-taking and risk management services of the Savings Banks Group meet the requirements established in Chapter 9 of the Act on Credit Institutions.

The Savings Banks Group’s risk management and internal control are part of the internal control of the Savings Banks Group and the Savings Banks Amalgamation and a central part of the Group’s operative activities. It is the responsibility of the Central Institution to guide the operations of the Amalgamation. It provides guidelines for the securing of liquidity and solvency for enterprises belonging to it in terms of risk management, reliable administration, internal control and compliance with uniform financial statement principles in the preparation of the Amalgamation’s financial statements.

The risk committee of the board of the Central Institution is tasked with assisting the board in matters related to the risk strategy and risk taking as well as in ensuring that the executive management complies with the risk strategy agreed on by the board.

The duty of the inspection committee of the board is to aid the board in monitoring, supervising and preparing the financial reporting system, internal control and inspections, as well as ensuring the efficiency of the risk management system, auditing and the independency and selection of auditors. The Central Institution approves the principles for the Group's internal control framework. At the Central Institution, functions have been established, independent of operations, to ensure effective and comprehensive internal control for all companies belonging to the Savings Banks Group.