Internal control system
The Internal Control System is a set of rules, procedures and organisational structures which - through a suitable process of identification, measurement, management and monitoring of major risks - ensure sound and fair business practices that are consistent with set objectives of performance, improvement, protection, information and compliance.
Board of Directors
The B.o.D is ultimately responsible for Group direction and coordination regarding control activities.
In its pursuit of a viable internal control system, the B.o.D.:
- approves strategic guidance, risk management policies and organisational structure;
- ensures that Top Management identifies an internal control structure that is in line with the selected risk appetite;
- makes sure that the structure of Corporate Control Functions is determined in accordance with the principle of proportionality and strategic guidelines and that the same Functions are provided with suitable resources both in terms of quality and quantity;
- sets out the key elements of the internal control system in a Corporate governance report;
- continuously ensures the proper functioning, effectiveness and efficiency of information and control systems and implements timely corrective measures where applicable.
The Group’s Internal Control System is organised into the following Corporate Functions:
- Business functions, responsible for governing the internal control system adopted as part of their processes;
- Control functions, responsible for monitoring the control systems in specific areas of risk; organisational positioning and hierarchical reporting ensure their independence from "Business functions";
- Internal Audit Function, responsible for providing assurance over the proper functioning and effectiveness of the Internal Control System.
The Ordinary Shareholders' Meeting of 29 April 2011 resolved to appoint the company Reconta Ernst & Young SpA as Independent Auditors for fiscal years 2011-2019, pursuant to articles 13 and following of Law Decree 39/10, art 2409-bis of the Civil Code as well as art. 30 of the Articles of Association.
Reconta Ernst & Young SpA
Piazza Tre Torri 2, 20145 Milano, www.pwc.com/it/
Financial Reporting Officer
Article 31 of Chapter XIV of the Banca Monte dei Paschi di Siena S.p.A.'s Articles of Association states that “Upon proposal of the Chief Executive Officer, and with the prior mandatory opinion of the Board of Statutory Auditors, the Board of Directors shall appoint - on a yearly basis - a person in charge of drafting corporate accounting documents, to be chosen among the Company's executives with proven accounting and financial experience. He/She shall be vested with appropriate powers and authorities for the accomplishment of his/her duties pursuant to the law. The Board of Directors shall also be entitled to remove such Executive”.