Control Management and Audit

Enity Bank Group is dedicated to strong governance through comprehensive control management and independent audits. Our control functions oversee compliance and risk, while our auditors provide objective assessments to ensure transparency and accountability, reinforcing trust with our stakeholders.

Control functions

Enity Bank Group has three independent control functions to support the Board, the Chief Executive Officer and the operational functions to ensure that Enity is conducting the business and operations in accordance with applicable laws and regulations as well as internal policies and instructions.

Risk Management function

The Risk Management function is independent from the operational business and support functions and is responsible for the risk management framework. The Risk Management function ensures that risks that Enity Bank Group is, or might be, exposed to are identified, assessed, measured, monitored, managed and properly reported. Further, the Risk Management function regularly monitors the risk profile against strategic goals and risk appetite.

The work is led by the Chief Risk Officer who is appointed by the Chief Executive Officer after approval by the Board. The Chief Risk Officer reports at least monthly directly to the Board and the Chief Executive Officer. The Board has adopted a policy for the risk management framework including the function and approves the annual risk control plan for the function. The Chief Risk Officer is chairman of the Risk and Compliance Committee, a member of the Asset and Liability Management Committee and the New Product and Approval Process committee.

Compliance function

The Compliance function is independent from the operational business and support functions whilst being a control function for the business. The function works proactively with quality regarding regulatory compliance through providing information, advice, training, supervision and monitoring of the compliance areas, thereby supporting the operational business and support functions, and management.

The work is led by the Head of Compliance who is appointed by the Chief Executive Officer after approval by the Board. The Head of Compliance reports at least monthly directly to the Chief Executive Officer and the Board. The Board has adopted a policy for the Head of Compliance. As a result of analysis of the risks in this area, the Board approves an annual Compliance Plan for the function. The Head of Compliance is also the Chairman of the New Product and Process Approval Committee and a member of the Risk and Compliance Committee.

Internal Audit function

The Internal Audit function is an independent function, directly subordinated to the Board. The Internal Audit function provides the Board and the Chief Executive Officer with reliable and objective evaluation of risk management, compliance, internal control and governance processes in order to reduce the occurrence of risks and improving the control framework within Enity Bank Group.

The Internal Audit function, which is currently outsourced to Deloitte AB, reports to the Board and informs the Chief Executive Officer regularly about internal matters. The Board has adopted a policy and approves an annual plan for the function.

External Audit

Enity Bank Group's external auditor has to be an authorised public accountant or an authorised accounting firm with a senior auditor. The auditor is appointed at the Annual General Meeting (AGM), and the Audit, Risk, and Compliance Committee (ARCCO) evaluates the audit work. The AGM in 2018 appointed Ernst & Young AB as auditors with Daniel Eriksson as the signing auditor.

The auditor examines the annual accounts, the consolidated accounts and the Board’s and Chief Executive Officer's management of the company. The auditor reports the results of his examination in the audit report, which is presented at the AGM. In addition, the auditor performs ongoing reviews of the financial processes and internal controls during the year.