Internal Control
In accordance with the Code, the Board acknowledges its responsibility to ensure that an adequate system of internal controls is in place.

The Board has overall responsibility for the Company’s system of internal control and risk management and for reviewing the effectiveness of this system. Such a system can only be designed to manage, rather than eliminate, the risk of failure to achieve business objectives and can therefore only provide reasonable, and not absolute, assurance against material misstatement or loss.

Operational matters and the responsibility for the day-to-day management of the businesses are delegated to the Chief Executive supported by the Executive Committee and to the respective Line of Business Heads within delegated authority limits and in accordance with clearly defined systems of control.

The Executive Committee, which meets at least twice per month, is made up of the Chief Executive, the Finance Director, the Company Secretary and the Director of Group Human Resources. All directors receive copies of the minutes from each Executive Committee meeting and the monthly reports submitted by the individual lines of business.

The Global Executive, which consists of the Executive Committee members and the Line of Business Heads, meets periodically to discuss the Health and Safety programme, business performance and common operational issues across Filtrona’s international businesses.

Polices and procedures, which are subject to ongoing review and updated as required, are communicated across the Company and designed to ensure significant risks, investment decisions and management issues are escalated as necessary at the earliest opportunity.

The Board believe that this management structure ensures a strong link between Filtrona’s overall corporate strategy and its implementation within an effective control environment.