The Board of Directors is ultimately responsible for ensuring that the Group has an effective system for risk management and internal control.
According to the Swedish Companies Act, the Board is responsible for ensuring that the Company’s organization is designed in such way so as to ensure satisfactory control of the bookkeeping, treasury management and of the Company’s financial conditions in general. The Code clarifies this and prescribes that the Board is responsible for internal control. The Board's report on internal control in the 2019 Annual and Sustainability report is prepared in accordance with the Annual Accounts Act and the Code, and the report has been reviewed by the Company’s auditor.
Axfood has elected to describe how its internal control is organized in the manner recommended by the Confederation of Swedish Enterprise and FAR in their guide to the Swedish Corporate Governance Code. This description is limited to internal control over financial reporting in accordance with point 7.4 of the Code. Neither the documented organization of internal control nor the content in the respective areas is to be viewed as being static; rather, these are continuously adapted to Axfood’s operations and external environment.
Axfood’s CFO has ultimate responsibility for ensuring that monitoring and work with Axfood’s internal control are conducted in accordance with the method decided on by the Board. A steering committee under the direction of the CFO leads the Group’s work with internal control over financial reporting. This steering committee reports its conclusions to the Board on a regular basis. Major emphasis is put on adapting the work with internal control to changes in Axfood’s business.
Axfood’s internal control structure is based on the COSO model, whose framework has been applied to Axfood’s business and conditions. According to the COSO model, a review and assessment are performed in the areas of the control environment, risk assessment, control activities, information and communication, and monitoring activities. Based on this review, certain development areas are identified and assigned priority in the ongoing internal control activities.