Saab 2011 Annual Report Download - page 144

essential risk areas as well as a report on planned and executed activ-
ities in these areas are communicated regularly to Saab’s Audit Com-
mittee. Saab’s risk assessment is also communicated regularly to
Saab’s external auditors.
Information, communication and control activities
Internal control within Saab is based on clearly dened areas of
responsibility and authority, issued Group guidelines, processes and
controls.
Uniform handling of nancial reporting is assured by adopting
and issuing Group guidelines approved by the CEO or by function
managers appointed by the CEO. All Group directives are updated
on an ongoing basis, are clearly communicated and are available on
the internal website.
Each business area designs its risk management routines and
structure for internal control based on overall routines and Group
guidelines.
e most signicant risks identied as regards nancial report-
ing are managed through control structures within the business
areas and Group functions and are based on Saab’s minimum
requirements for good internal control in signicant processes.
Monitoring and evaluation
All operating units report monthly and quarterly according to a
standardised routine. Quarterly reports serve as the basis of Saab’s
external nancial reporting. In operating reports, each business
area’s measures of protability and nancial position are consoli-
dated to measure the Group’s total protability and nancial posi-
tion. Accounting managers and controllers are continuously in con-
tact with Group Finance concerning any questions related to nance
and accounting.
To assist in evaluating internal control in each business area, Saab
uses an annual self assessment. In addition to the processes that
serve as a basis for the nancial reporting, these assessments cover
operating risks, reputational risks and compliance with laws, regula-
tions and internal rules. is is also reported to the Audit Commit-
tee. e Internal Audit department, which is part of the internal con-
trol structure, is a dedicated resource for independent review of the
eectiveness of internal control processes. At the same time, Internal
Audit supports locally applied internal controls and the central con-
troller sta. Together they serve as a resource to monitor nancial
reporting routines. Internal Audit’s assignments are initiated by the
Audit Committee, Group Management and its members, and on its
own initiative.
Activities in 
During , an extensive review was made of Saab’s internal nan-
cial control system. Based on the evaluation of the risk controls, cor-
rective measures were identied and evaluated. An independent
evaluation of all identied controls launched at the end of  was
concluded in . e analysis and evaluation of the internal con-
trols in  resulted in a modied reporting process in .
Risk self-assessments were conducted on a continuous basis in
the Swedish operations in . is process was also implemented
during the year in Saab’s operations in Australia and South Africa.
Implementation has begun in the U.S. as well.
Focus in 
A self-assessment will be conducted at least twice in  in all of
Saab’s business areas and an independent assessment will be made at
least once. At the same time, improvements to existing control sys-
tems are being made continuously.
The annual assessment process of internal financial controls as of 2011
January 1
June 30
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Independent review of self
assessment results
Preparation of Corporate
Governance Report
Q3 Self Assessment
Q1 Self Assessment
Remediation of issues identified during
Q1 Self Assessment
√ Status of financial controls
reported to Group Manage-
ment monthly.
√ Self assessments communi-
cated to the Audit Committee,
Internal Audit and External
Auditors.
140 SAAB ANNUAL REPORT 2011
CORPORATE GOVERNANCE REPORT