Saab 2010 Annual Report Download - page 135

Uniform handling of nancial reporting is assured by adopting and
issuing Group guidelines approved by the  or by function man-
agers appointed by the . 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tablity and nancial position are consolidated
to measure the Group’s total protablity and nancial position.
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 operat-
ing risks, reputational risks and compliance with laws, regulations
and internal rules. is is also reported to the Audit Committee.
e Internal Audit department, which is part of the internal control
structure, is a dedicated resource for independent review of the e-
ciency of internal control processes. At the same time, Internal Audit
supports locally applied internal controls and the central controller
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 2010
During  an extensive review was made of Saab’s internal nan-
cial control system. e goal was to analyse and identify existing con-
trols and to identify areas of improvement and strengthen the report-
ing and evaluation of the internal control over nancial reporting.
e process started with an assessment on the group level that cas-
caded down to the business areas. Based on the risk assessment, con-
trols mitigating identied risks where identied and evaluated.
An independent assessment of all identied controls was initi-
ated at the end of  and will be nalised in .
Focus in 2011
e review of the internal control over nancial reporting has
resulted in changes in the reporting process. As of , the status of
all nancial controls by business area will be reported on a monthly
basis to Group Management compared to once per year previously.
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.
132 SAAB ANNUAL REPORT 2010
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