Internal control and risk management

Tieto’s internal control framework supports the execution of the strategy and ensures regulatory compliance. The foundation for internal control is set by the risk management framework, financial control, internal audit and the supporting policies.

 

The aim of Tieto’s internal control framework is to assure that operations are effective and efficiently aligned with the strategic goals. The internal control framework is to ensure reliable, complete and timely financial reporting and management information. The framework endorses ethical values, good corporate governance and risk management practices.

The activities related to internal control and risk management are part of Tieto’s management practices and integrated into the business and planning processes.

Risk management framework

Tieto uses systematic risk management as a means of developing efficiency and control of business operations, their profitability and continuity. The role of risk management organization is to develop and maintain the company’s risk management framework, including also risk reporting, risk management governance and follow-up of risk exposures consisting of strategic, financial, operational, and compliance risks.

MANAGEMENT OF FINANCIAL RISKS

The group's activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity risk), credit risk and liquidity risk. The operative management of the treasury activities of Tieto is centralized into Group Treasury. The Group Treasury is responsible for managing the Group’s financial risk position and maintaining adequate liquidity. The Treasury Policy, which has been approved by the board of directors, defines the principles for measuring and managing liquidity risk, interest rate risk, foreign exchange risks and counterparty risk of the Group. The Treasury Policy also defines the division of responsibilities with regard to financial risk management. The Group reviews and monitors financial risks on a regular basis.

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Further information on risks and risk management