Komplett Bank annual report 2019

Chief Finance Officer Komplett Bank’s chief finance officer (CFO) is responsible for having an overview of the Bank’s financial position at all times and for preparing financial statements and reports, including financial reports to government agencies, and conducting ongoing governance and control regarding the Bank’s collective liquidity and financial risk. The CFO is also responsible for ensuring that accounting processes comply with applicable regulations. Risk Control Function The risk control function is responsible for ensuring that all significant risks within the company are identified, measured and reported by the relevant organisational units within Komplett Bank. The risk control func- tion reports directly to the Board of Directors in cases where the Board does not receive the necessary information concerning significant risks via the general reporting process, or highlights cases where identified risks either impact or could potentially impact negatively on the Bank. The risk control function can be combined with other roles, but must be independent of the Bank’s management and other business areas within the Bank and cannot be disbanded without the consent of the Board of Directors. Internal Audit In February 2019, the Board of Directors approved the establish- ment of an internal audit function as part of the work to ensure good internal control and reveal risks. EY was elected as indepen- dent internal auditor. The role was established in Q2 2019, and became effective from Q3 2019. The role of the internal audit unit is to ensure that the Bank is organised and operated in an appro- priate manner and in accordance with applicable requirements. Circumstances that are deemed to be unsatisfactory must be reported to the Board of Directors and the general manager. The internal auditor conducts his audits in accordance with the audit plan and instructions adopted annually by the Board of Directors. Compliance Officer The compliance officer reports to the CEO and the Board of Directors, and is responsible for the performance of independent controls, reporting and follow-up of the Bank’s compliance with internal and regulatory requirements. The role of compliance officer can be combined with other roles, but must be independent of the Bank’s management and other business areas within the Bank and cannot be disbanded without the consent of the Board of Directors. Asset-Liability Committee The CEO, CFO, credit and debt collection Director, IT and market- ing Director and product Director for credit cards comprise the Bank’s asset-liability committee. The committee is chaired by the CEO. The CFO is responsible for preparing matters for the asset-li- ability committee. The asset-liability committee is responsible for the overarching management of the Bank’s liquidity risk level and for preparing recommendations for the Board of Directors concerning changes to the Bank’s finance policy. Amongst other things, the committee is responsible for deter- mining investment strategies and changes to conditions for the Bank’s deposit products, as well as the follow-up of internal control and reporting. The committee is also responsible for preparing matters for the Board of Directors regarding the Internal Capital Adequacy Assessment Process (ICAAP), including adopting a stance regarding capital requirements, and the Bank’s contingency plan regarding liquidity. Finance Department The finance department is responsible for risk management and internal control of the following risks: · counterparty risk outside the lending business · market risk · liquidity risk · financial risk The finance department is responsible for complying with risk decisions set out in the Bank’s financial policy, which is adopted by Komplett Bank’s Board of Directors. This policy establishes the frame- work for what the Board of Directors deems to be a satisfactory risk profile, and is intended to promote appropriate risk management and internal control, thereby ensuring regular reporting andmonitoring. Credit Committee The CEO, CFO, credit and debt collection Director, IT and marketing Director comprise the Bank’s credit committee. The compliance officer has a right to attend, but not vote at, meetings. The committee is chaired by the credit and debt collection Director. Amongst other things, the credit committee is responsible for submitting proposals to the Board of Directors concerning changes to the Bank’s credit policy, determining the delegation of credit authorities, and amending or establishing new credit procedures and credit processes. The committee is also responsible for following up internal control and submitting regular reports regarding the Bank’s risk exposure and management. Financial Supervisory Authority of Norway Komplett Bank is subject to the supervision of the Financial Supervisory Authority of Norway. Amongst other things, the Financial Supervisory Authority of Norway reviews the Bank’s annual and interim reports, as well as the Bank’s Internal Capital Adequacy Assessment Process (ICAAP), where a stance is adopted regarding the capital requirement and contingency plan. Audit Annual reports are audited by the Bank’s external auditor. Komplett Bank is not permitted to give the auditor duties which could cast 16 Corporate governance