The Board of Management’s statement on the financial statements, the management report and internal controls
We have prepared the AkzoNobel Report 2012 and the undertakings included in the consolidation taken as a whole in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and additional Dutch disclosure requirements for annual reports.
To the best of our knowledge:
- The financial statements in this AkzoNobel Report 2012 give a true and fair view of our assets and liabilities, our financial position at December 31, 2012, and the result of our consolidated operations for the financial year 2012
- The management report in this AkzoNobel Report 2012 includes a fair review of the development and performance of the businesses and the position of AkzoNobel and the undertakings included in the consolidation taken as a whole, and describes the principal risks and uncertainties that we face
The Board of Management is responsible for the establishment and adequate functioning of internal controls in our company. Consequently, the Board of Management has implemented a broad range of processes and procedures designed to provide control by the Board of Management over the company’s operations. These processes and procedures include measures regarding the general control environment, such as a Code of Conduct including business principles and a corporate complaints procedure (SpeakUp!), corporate directives and authority schedules, as well as specific measures, such as a risk management system, a system of controls and a system of letters of representation by responsible management at various levels within our company.
All these processes and procedures are aimed at a reasonable level of assurance that we have identified and managed the significant risks of our company and that we meet our operational and financial objectives in compliance with applicable laws and regulations. The individual components of the above set of internal controls are in line with the COSO Enterprise Risk Management Framework. With respect to support to, and monitoring of, compliance with laws and regulations including our Code of Conduct, a Compliance Committee has been established. Internal Audit provides assurance to the Board of Management whether our internal risk management and control systems, as designed and represented by management, are adequate and effective.
While we routinely work towards continuous improvement of our processes and procedures regarding financial reporting, the Board of Management is of the opinion that, as regards financial reporting risks, the internal risk management and control systems:
- Provide a reasonable level of assurance that the financial reporting in this Report 2012 does not contain any errors of material importance
- Have worked properly during the year 2012
For a detailed description of the risk management system with regard to the strategic, operational and compliance risks and the principal risks identified, reference is made to the chapter in the Strategy section, as well as the chapter of the Governance and compliance section. We have discussed the above opinion and conclusions with the Audit Committee, the Supervisory Board and the external auditor.
In the short term, we expect the economic environment will remain challenging and there to be no fundamental changes in the trends that we have seen recently in our businesses. We will continue to focus on performance improvements and operational efficiencies in order to benefit from our strong portfolio of businesses with many leading market positions and exposure to growth markets.
Amsterdam, February 19, 2013
The Board of Management