The Executive Board is responsible for designing, implementing and maintaining an adequate system for internal control over financial reporting. Financial reporting is the product of a structured process carried out by various functions and banking business units under the direction and supervision of the financial management of Triodos Bank.
The Executive Board is responsible for the risk management and compliance functions. The risk management function develops and executes risk policies and procedures involving identification, measurement, assessment, mitigation and monitoring of financial and non-financial risks. The compliance function plays a key role in monitoring Triodos Bank’s adherence to external regulations and internal policies. The adequate functioning of the risk management and compliance functions as part of the internal control system is supported by Triodos Bank's culture and supervised by the Audit and Risk Committee.
Triodos Bank’s internal audit function provides independent and objective assurance of Triodos Bank’s corporate governance, internal controls, compliance and risk management systems. The Executive Board, under the supervision of the Supervisory Board and its Audit and Risk Committee, is responsible for determining the overall internal audit work and for monitoring the integrity of these systems.
The risk management framework is an important building block in the internal control structure of the bank. Triodos Bank is working in a changing environment, which requires regular upgrades of its internal control structure and frameworks. The risk management and control framework cannot guarantee an absolute level of reliability but provides a solid level of assurance regarding the accuracy of financial reporting and the fair presentation of its financial statements.
The Executive Board report provides insight into the functioning of internal controls, compliance and risk management systems. Triodos Bank’s risk management and control framework continues to evolve to support the business and to meet regulatory requirements.