Unilever 2013 Annual Report Download - page 38

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Unlever’s functonal standards defne mandatory requrements
across a range of specalst areas such as health and safety,
accountng and reportng and fnancal rsk management
PROCESSES
Unlever operates a wde range of processes and actvtes
across all ts operatons coverng strategy, plannng, executon
and performance management Rsk management s ntegrated
nto every stage of ths busness cycle These procedures are
formalsed and documented and are ncreasngly beng
centralsed and automated nto transactonal and other
nformaton technology systems
ASSURANCE AND RE-ASSURANCE
Assurance on complance wth the Code of Business Principles
and all of our Code Policies is obtained annually from Unilever
management via a formal Code declaration. In addition, there
are specialist compliance programmes which run during the year
and vary depending on thebusness prortes These specalst
complance programmes supplement the Code declaration.
Our Corporate Audit function plays a vital role in providing to both
management and the Boards an objective and independent review
of the effectiveness of risk management and internal control
systems throughout Unilever.
BOARDS’ ASSESSMENT OF COMPLIANCE WITH
THE RISK MANAGEMENT FRAMEWORKS
The Boards, advised by the Committees where appropriate,
regularly review the significant risks and decisions that could
have a material impact on Unilever. These reviews consider the
level of risk that Unilever is prepared to take in pursuit of the
business strategy and the effectiveness of the management
controls in place to mitigate the risk exposure.
The Boards, through the Audit Committee, have reviewed the
assessment of risks, internal controls and disclosure controls
and procedures in operation within Unilever. They have also
considered the effectiveness of any remedial actions taken for
the year covered by this report and up to the date of its approval
by the Boards.
Details of the activities of the Audit Committee in relation to
this can be found in the Report of the Audit Committee on pages
53 to 55.
Further statements on compliance with the specific risk
management and control requirements in the Dutch Corporate
Governance Code, the UK Corporate Governance Code, the US
Securities Exchange Act (1934) and the Sarbanes-Oxley (2002)
Act can be found on pages 47, 48 and 50.
PRINCIPAL RISK FACTORS
Our business is subject to risks and uncertainties. On the following
pages we have identified the risks that we regard as the most
relevant to our business. There may be other risks which are
unknown to Unilever or which are currently believed to be
immaterial. We have also commented below on certain mitigating
actions that we believe help us to manage these risks. However, we
may not be successful in deploying some or all of these mitigating
actions. If the circumstances in these risks occur or are not
successfully mitigated, our cash flow, operating results, financial
position, business and reputation could be materially adversely
affected. In addition risks and uncertainties could cause actual
results to vary from those described, which may include forward-
looking statements, or could impact on our ability to meet our
targets or be detrimental to our profitability or reputation.
Unlever Annual Report and Accounts 2013 35Strategic report