Risk and risk management
Macintosh has set up its organisation in a way that combines decisive entrepreneurship with effective risk management. Risk management has become top-of-mind and is embedded in the organisation and day-to-day operations.
A description of the design and effectiveness of the risk management and control systems is available online at www.macintosh.nl.
Given its activities in the Fashion and Living segments, Macintosh is dependent on consumer spending to a great extent when it comes to turnover and earnings. Consumers are affected by many factors that Macintosh cannot influence, such as the state of the economy, the weather and changes in the area of technology. It can assess and monitor the resulting risks, but it is not able to influence them. In order to limit such risks, the cyclical, strategic and commercial risks, opportunities and threats are assessed, and anticipatory action is taken wherever possible.
The Report of the Managing Board sets out the main features of the management and control systems, as well as the essential risks facing the company in 2014. For a more detailed description of the risk management systems, see www.macintosh.nl. The Managing Board declares that it accepts responsibility for the design and effectiveness of the internal risk management and control systems tailored to Macintosh.
In 2014, the Managing Board conducted independent and systematic assessments and reviews of relevant significant risks and the internal control structure. On that basis, the Managing Board declares that, to the best of its knowledge, the internal financial reporting control system provides reasonable assurance that the financial reports are free of material misstatement; it also concludes that the internal risk management and control systems operated effectively in the year under review.
The risk management and control systems in place significantly reduce the risk of incorrect decisions being made, control processes being deliberately circumvented, and laws and regulations not being complied with. However, it is virtually impossible to identify, or fully document and manage, all risks at all times. As a consequence, the existing systems will never provide an absolute level of assurance against the failure to achieve targets, nor will they be able to prevent all instances of material misstatement, including loss, fraud or violations of laws and regulations.
For a description (in Dutch) of the formal structure and operation of the risk management and control systems click here.