Ryanair 2012 Annual Report Download - page 24

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At the Meeting, after each resolution has been dealt with, details are given of the level of proxy votes cast on
each resolution and the numbers for, against and withheld. This information is made available on the Company‘s
website following the meeting.
Risk Management and Internal Control
The directors have overall responsibility for the Company‘s system of risk management and internal control
and for reviewing its effectiveness. The directors acknowledge their responsibility for the system of risk
management and internal control which is designed to manage rather than eliminate the risk of failure to achieve
business objectives, and can provide only reasonable and not absolute assurance against material misstatement or
loss.
In accordance with the revised FRC (Turnbull) guidance for directors on internal control published in
October 2005, ‗Internal Control: Revised Guidance for Directors on the Combined Code‘, the Board confirms that
there is an ongoing process for identifying, evaluating and managing any significant risks faced by the Group, that
it has been in place for the year under review and up to the date of approval of the financial statements and that
this process is regularly reviewed by the Board.
In accordance with the provisions of the 2010 Code the directors review the effectiveness of the Company‘s
system of internal control including:
Financial
Operational
Compliance
Risk Management
The Board is ultimately responsible for the Company‘s system of risk management and internal controls and
for monitoring its effectiveness. The key procedures that have been established to provide effective risk
management and internal control include:
a strong and independent Board which meets at least 4 times a year and has separate Chief Executive and
Chairman roles;
a clearly defined organisational structure along functional lines and a clear division of responsibility and
authority in the Company;
a comprehensive system of internal financial reporting which includes preparation of detailed monthly
management accounts, providing key performance indicators and financial results for each major function
within the Company;
preparation and issue of financial reports to shareholders and the markets, including the Annual Report and
consolidated financial statements, is overseen by the Audit Committee. The Company‘s financial reporting
process is controlled using documented accounting policies and reporting formats, supplemented by
detailed instructions and guidance on reporting requirements. The Company‘s processes support the
integrity and quality of data, including appropriate segregation of duties. The financial information of the
parent entity and all subsidiary entities, which form the basis for the preparation of the consolidated
financial statements are subject to scrutiny by Group level senior management. The Company‘s financial
reports, financial guidance, and Annual Report and consolidated financial statements are also reviewed by
the Audit Committee of the Board in advance of being presented to the full Board for their review and
approval;
quarterly reporting of the financial performance with a management discussion and analysis of results;
weekly Management Committee meetings, comprising of heads of departments, to review the performance
and activities of each department in the Company;
detailed budgetary process which includes identifying risks and opportunities and which is ultimately
approved at Board level;