Like other companies, Strukton has to deal with various commercial, operational and financial risks. These risks are inherent to its business operations. The company seeks to limit them by taking a systematic approach to these risks at both the strategic and operational levels.

Risks within the company

Strukton takes a systematic approach to identifying and following up risks within the company. Strukton uses the framework of the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in order to identify and deal with duplications, inconsistencies and gaps in the risk management and internal control of existing activities.

In 2010, the various risks were once again identified and assessed. The key issues relating to business risks and strategic objectives are: 

• Safety
• Clients' procurement procedures
• Tendering costs
• Conflicts of interest
• Design and execution
• Fixed prices
• Labour market
• Recession
• Clients' wishes
• Capacity utilisation rate
• Available credit facilities
• Internal control systems
• Risk management framework
• Code of Conduct
• Management Board regulations and representative authority
• Reporting structure

Conclusion

Based on the above-mentioned systems, the applicable frameworks and the associated reporting structure, we are of the opinion that the risk management and control system has been set up properly and functioned as it should in the year under review. The Group Management Board also believes that the financial statements do not contain any material misstatements. At present there are no indications that the risk management and control system will fail to function properly in 2011.