Risk management

Vion has opted to use the COSO model for its risk management and to set up financial control. The policy in respect of risk management is laid down by the Risk Committee, consisting of the CEO and the COOs of the divisions, chaired by the CFO.

The model is in line with Vion’s decentralised management philosophy, which gives operational units  scope to fill in the details of their responsibilities, within a predefined framework. This philosophy is contained in a Management Charter.

The business operations and results are controlled by means of process descriptions, monitoring, self assessments and audits. Monitoring takes place on the basis of a predefined planning and control system as part of which the companies are assessed and compared to each other by means of key performance indicators, their results and the cash flow generated.

The processes are laid down in the various management systems. Most operational processes are coupled to systems to assure quality and food safety, e.g. ISO and HACCP. The organisational and financial processes are laid down in the Vion Accounting & Control Manual and in specific process descriptions for the various individual entities. The functioning of the controls is assessed by means of Control Review Self Assessments. As part of these assessments, the responsible management for the company in question confirms the configuration and operation of the management and control measures and signs a Letter of Representation.

In addition to the Self Assessments, audits are used to determine whether the operational units operate within the predefined framework. The internal and external audits required under ISO are used for the operational systems, often complemented by separate audits initiated by the buyers of the products. Organisational and financial audits are mainly conducted by the Internal Audit Department which audits the processes and the financial reports. The Internal Audit Department’s positioning, working method and audit approach is so extensive that the external auditor relies to a great extent on the Internal Audit Department’s reports and records.

The findings of the Internal Audit Department are discussed – according to the principle that both sides must be heard – and reported to the local management, with copies going to the Executive Board and senior management.

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