Risk management at Sievi Capital is based on a risk management policy approved by the Board of Directors which targets a comprehensive and proactive management of risks. The Company strives to detect and identify the factors which might have injurious effect on achieving the targets of the Company either in short or long-term time frame, as well as initiate necessary actions to control this kind of factors. Risk management of target company level plays a significant role in risk management and is mainly organized by the portfolio companies. Sievi Capital strives to improve the risk management of its portfolio by active corporate governance and contribution to the operation of Board of Directors of the target companies. Sievi Capital assesses the most relevant risks at the target company level and enhances the implementation of risk management in target companies.
Sievi Capital is an investment company. The Board of Directors of Sievi Capital confirms the Company’s strategy and business plan in which among other things targets for new investments and exits are defined. The Board makes the investment decisions concerning new private equity investments and oversees the implementation of the investment activities. Due to the Company’s investment strategy and the nature of investments a significant part of Sievi Capital’s most relevant risks are related to the Company’s target companies.
Internal Control and Audit
Internal control at Sievi Capital is an ongoing process to secure the profitability of the business and its continuity. The objective of monitoring is to minimize risks by securing that reporting is reliable and that laws and regulations are being followed.
Considering the structure and scope of the Company’s business, setting up a separate internal audit organisation has not been considered applicable. The Company’s management is responsible for the internal control system. Internal control is an active part of the Company’s management and governance.
The basis of financial monitoring is formed by the controls included in operational processes, which enable fast anomaly detection and reaction. A material part of the financial monitoring is monthly reporting by management. The metrics followed in the monthly reporting have been set so that they support the Company in reaching targets and raise issues that require controlling actions. Due to the nature of the business, budgeting in its traditional form is not used in the parent company. The interpretation and appliance of the accounting standards is managed by the corporate financial administration.