Risk and risk management
SCA is exposed to a number of risks with the potential to exert a greater or lesser material impact on the Group, which can affect SCA's brand and credibility and the possibility of being a sustainable company with good profitability over time.
The responsibility for long-term and overall management of strategic risks follows the company's delegation scheme, from the Board to the CEO, and from the CEO to the Business Area Presidents and manager for the supporting unit.
In addition to being reviewed by SCA's external auditors, its operations are subject to external reviews and monitoring by, among others, the Swedish Financial Supervisory Authority and Nasdaq Stockholm. Life cycle assessments are another example of third-party assessments.
SCA's own control systems include segregation of duties in critical processes and defined management responsibilities with regard to internal control. There is also a separate internal audit function at SCA that works to evaluate and improve the effectiveness of SCA's governance processes, risk management and internal control. SCA's Internal Audit organization contributes to the maintenance of high standards of business practice and is involved in the monitoring of Code of Conduct compliance through such activities as Code of Conduct audits at manufacturing sites and Business Practice audits. To support its work, the Internal Audit unit has a number of steering documents and policies. Read more in our annual report.