Internal control and risk management

Internal control and risk management play a role in implementing good governance policies at the Employment Fund. Internal control and risk management procedures are linked to the Employment Fund's corporate governance, decision-making, and strategic and operative planning.

The Employment Fund has an internal control and risk management policy – set by the Board of Directors of the former organisation, the Unemployment Insurance Fund – including internal control guidelines. Furthermore, the Employment Fund’s internal control is based on investment principles determined by the Supervisory Board, investment plans determined by the Board of Directors, debt servicing plans, principles of data management and data security, internal audit procedures, and the Fund’s other procedures.

Objectives of internal control and risk management

Internal control and risk management at the Employment Fund involve procedures aimed at achieving reasonable certainty of the following:

The achievement of set objectives and the effectiveness of operations

• The Employment Fund collects and distributes unemployment insurance and liability component payments and other income, including the implementation of adult education allowances, in an effective and lawful manner
• The assets held by the Employment Fund are well kept and managed, and the resources are safeguarded from any losses arising from the poor performance of duties, misspent funds, errors, misconduct, or other actions that violate the rules and guidelines
• The Employment Fund’s operations and use of assets are effective in such a way that the objectives are achieved and the operations are economical, profitable and impactful

The production of accurate and sufficient information relating to finances and operations

• Information is available about the Employment Fund’s operations, finances and administration as required for effective management, and the information is also used for management
• A true and fair view of the operations, finances, administration and effectiveness of the Employment Fund is reported to the Board of Directors and Supervisory Board

Legality and compliance of operations

• The Employment Fund’s activities comply with the law and applicable guidelines and regulations, as well as the requirements of good governance

Responsibilities of internal control and risk management

The Employment Fund’s Board of Directors decides on the principles of internal control and risk management, requiring that the Fund’s functions are organised in such a manner that sufficient internal control and risk management is realised at all levels of the organisation and in all its operations.

The principles of the Employment Fund’s internal control and risk management apply to all of the Fund’s functions, and each employee is responsible for implementing them.

There is more detailed information about risks in the most recent annual report.