Risk management and internal control

Risk management and internal control are part of daily operations at the Savings Banks Group, and each employee is responsible for them within their area of responsibility. Efficient risk management is based on open dialogue, asking questions and expressing different perspectives to support decision-making.

The central institution has the main responsibility for risk management

The central institution of the Savings Banks Amalgamation steers the amalgamation’s operations and is responsible for risk management at the amalgamation level. The central institution provides the amalgamation’s member entities with guidelines on risk management, reliable administration and internal control as well as guidelines for compliance with uniform financial statement policies. Furthermore, the central institution supervises the member organisations to ensure the use of the amalgamation’s shared operating principles as well as the appropriate procedures in their customer relationships.

Control activities are led by the Board of Supervisors

The Amalgamation’s control system, i.e. internal control, consists of control carried out by the central institution’s Board of Supervisors and the Board of Directors, control carried out by independent functions and business operations’ control of their own activities.

The supreme control body of the Savings Banks Amalgamation is the Board of Supervisors, tasked with overseeing the administration of the central institution, which is the responsibility of the Board of Directors and the CEO, and ensuring that the operation of the central institution is conducted competently and diligently in accordance with the Cooperatives Act and for the benefit of the central institution and the Amalgamation.

The central institution’s Board of Directors carries out internal control

The central institution’s Board of Directors is responsible for organising the internal control of the Savings Banks Amalgamation. The Board of Directors’ Audit Committee supports the Board in ensuring that the Savings Banks Group employs adequate internal controls, internal audit systems and audit procedures. The Risk Committee assists the Board of Directors in matters concerning risk strategy and risk-taking as well as monitoring that the Savings Banks Group complies with the risk strategy decided by the Savings Banks’ Union Coop’s Board of Directors.

The Savings Banks Amalgamation follows a control model based on “three lines of defence”. These are internal control of the business operations, control of independent control functions and internal auditing of the amalgamation.

The compliance function monitors compliance with legislation

The purpose of the business-independent risk control and compliance functions is to ensure efficient and comprehensive risk management and internal control. Independent risk control monitors that the risk management of the Savings Banks Group is at a sufficient level in relation to the quality, scope, diversity and risks of the business. The Compliance function is responsible for ensuring that the Savings Banks Group complies with laws, instructions and regulations issued by the authorities and the Group’s internal guidelines.


Learn more: Code of Conduct