Lumi Gruppen’s corporate governance is based on the Company’s Articles of Association and the Company’s values as resolved by the Board of Directors with the aim of realising the Company’s long-term goals, and to ensure progress and control.
Through sound corporate governance, the Company aims to build trust and ensure sustainable operations and financing of its business.
Board of Directors
The Board of Directors of the Company shall annually revise and oversee the overall strategy and business plan for the Company and approve the annual budget for the next year. The Board of Directors has decided to establish a separate audit committee and a compensation committee in 2022.
the Board of Directors
- Decide on general business and management principles of the Company.
- Decide on strategy and risk policies of the Company.
- Supervise the performance of the Company, the Executive Management and secure the proper organisation of the Company.
- Review the Company’s financial position, capital resources and reporting on financials and performance.
- Appoint the CEO.
The Board of Directors will convene at least six times per year.
The Executive Management is responsible for the day-to-day management of the Company in accordance with the instructions provided by the Board of Directors, among others comprising:
- Manage the Company’s business and operations and develop strategies to be approved by the Board of Directors.
- Implement the strategy for the Company and execute on investments and divestments.
- Develop the organisational structure of the Company and allocate resources.
- Drive and monitor the performance of the Company.
- Prepare internal and external financial reporting.
- Establish internal policies and procedures for relevant topics, such as finance, IT etc.
- Oversee risk management and internal control.
- Report to the Board of Directors.
Risk Management and Internal Control
The framework for the internal control and risk management of the Company is structured with the aim to allow the business to be run in a way that is healthy, proper and consistent with the following objectives:
(i) Internal control: to assure that all company policies and standards are up to date, communicated and implemented.
(ii) Risk management: to identify and manage essential risks related to the execution of the Company’s strategy and operations, and to demonstrate that the Company actively manages risks in order to deliver the best possible service to customers, protect the value of the business, safeguard future earnings and reduce costs associated with risk events.
The responsibility for the quality and appropriateness of the Company’s internal control and risk management rests with the Board of Directors, while the Executive Management is responsible for identifying and analysing material risks, and for the general development of the system. The Executive Management shall further provide the Board of Directors with reports on exposures and the utilisation of the framework on a continuous basis.