Structured risk management

Kendrion adheres to a framework defining the various elements involved in risk management and the relationships between them. Wherever possible, Kendrion aims to eliminate duplication between individual systems and, where systems are interdependent, to establish links between them where appropriate.

Factors determining the quality of risk management are the integrity, business ethics and expertise of the personnel, the style of management and the way in which powers and responsibilities are delegated and monitored by management, the commitment and development of the personnel and the control exercised over those factors.

The principal components of the internal risk management and control systems in the reporting year are:

Code of Conduct
Kendrion introduced a Code of Conduct governing all Kendrion employees in 2005. This Code of Conduct lays down Kendrion’s objectives and ethical values, and also devotes specific attention to codes of conduct relating to competition rules. The Code of Conduct has been distributed within the company and published on the website.

Whistleblower’s charter
The Whistleblower’s charter was introduced throughout the entire company in 2005. This charter protects employees who report – potential – infringements of code of conduct rules, policy or procedures. No use was made of the charter in 2008.

Regulations to prevent insider trading
Kendrion has implemented regulations to prevent insider trading which are designed to make a contribution to the prevention of employee infringement of the prevailing insider-trading and market-abuse regulations. 

Rules and Regulations and Letters of Representation
Kendrion employs Rules and Regulations and Letters of Representation. The Rules and Regulations constitute a code of conduct governing all Kendrion Directors. The Letters of Representation are submitted once a quarter, in a bottom-up procedure, to the operating company Directors and Controllers, and to the Business Unit Managers and their Controllers. Each officer is required to sign the letters to confirm to their managers that the information and financial information they have reported is correct and complete. In 2007, the Letters of Representation were rendered more stringent and more compatible with the new risk-management guidelines.

Group Reporting Manual
Kendrion has implemented a Group Reporting Manual governing all operating companies to provide for correct financial reporting. The Manual is continually updated. To this end the company has implemented measures including the formation of the Kendrion Group Reporting Committee, with representatives from the operating