Internal Audit is a function, independent of business operations, which evaluates the efficiency and effectiveness as well as the maturity of the internal control system within Mandatum Group. The function helps the business organisation to accomplish its objectives through a systematic approach to evaluate and improve the effectiveness of the risk management, control and governance processes. The Group function is organised under the Board of Directors of Mandatum plc and it reports to the Board and its Audit Committee. It is managed by the Group Chief Audit Executive, who is appointed by the Board of Directors of Mandatum plc. Internal audit functions are established in each Group company as regulations demand and approved by the respective Board of Directors.

The work is carried out in accordance with the Mandatum Group Internal Audit Policy, approved by the Board of Directors of Mandatum plc and each regulated Group company. According to the policy, the Internal Audit applies the mandatory international guidance of the Institute of Internal Auditors as applicable. The external quality assessment of the function is carried out every five years. 

The Internal Audit establishes an internal audit activity plan for the licensed Group companies. The plans are updated annually and approved by the Board of Directors in the respective legal entity, after which they are confirmed by Mandatum plc’s Audit Committee. The approach is risk-based and takes into consideration relevant strategic focus areas of the business. The Group’s auditor is also informed about the internal audit activity plans. 

Internal Audit reports on the audits and follow-up activities performed to the Board of Directors of the legal entities at least twice a year and to Mandatum plc’s Audit Committee quarterly. Company-specific audit observations are reported to the management of the respective company. These reports include any significant deficiencies detected and the risks related to corrective management actions not being taken.