Annual report 2021ꢀꢀBetter Collective Corporate Mattersꢀ
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business, that there are effective systems for monitoring
and control of the Company’s business and the risks
associated with the Company and its business, and to
ensure that the financial reporting has been prepared in
accordance with applicable laws, accounting standards
and other requirements imposed on listed companies.
The board of director’s responsibility for the internal
control and financial reporting is governed by the
Danish Financial Statements Act, the Danish Companies
Act and the Code. In addition, the board of directors
has implemented an internal control framework based
on the COSO standard, which focuses on the five areas:
control environment, risk assessment, control activities,
information as well as communication and monitoring.
the Company’s internal control, internal audit and risk
management, to be informed about the audit of the
annual report and consolidated financialstatements,
and to review and monitor the auditor’s impartiality
and independence. The board evaluates the need for an
internal audit function annually. In 2021, given the size
of the company, it was decided that an internal audit
function is not currently needed.
to the audit committee and subsequently to the board
of directors. The risk management assessment shall
include a follow-up on previous year’s work and a
review of any changes to procedures, control systems
and risk-mitigating actions.
Risk management
Through an Enterprise Risk Man-
agement process, a number of
gross risks in Better Collective
are identified. Each risk is de-
scribed, including current risk
mitigation in place, or planned
mitigating actions.
With regards to financial reporting, the CFO and the
finance department annually prepares a report for the
audit committee, including a review of items subject to
special risks and significant accounting estimates and
judgements, allowing the audit committee to monitor
the financial reporting process. The audit committee
also evaluates the need for an internal audit function
annually and makes recommendations to the board of
directors.
The Company applies an internal “signing & approval”
framework to ensure a clear and formalised distribution
and limitation of power, and to define and govern
guidelines for the delegation of authority to sign on
behalf of the Company. The Company has furthermore
established an IT governance structure to ensure that
all major IT projects support the Company’s business
goals and that existing IT systems and resources
are used optimally. The Company has implemented
a whistleblower scheme providing employees with
the ability to easily and anonymously report any
observations of potentially destructive, unethical or
illegal activities related to the Company.
The subsequent analysis of the
identified risks includes an inher-
ent risk evaluation based on two
main parameters: probability of
occurrence and impact on future
Earnings and Cash Flow.
Control environment
Control activities
In order to create and maintain a functioning control
environment, the board of directors has adopted a
number of steering documents and policies, including
rules of procedure for the board of directors, the
board committees and the executive management
with instruction for financial reporting to the board
of directors. The policies include a tax policy, treasury
policy, IT policy, information policy, insider policy,
instruction for insider lists and a code of conduct. The
Company also has a group accounting manual which
contains principles, guidelines and processes for
accounting and financial reporting.
Better Collective’s management
continuously monitors risk de-
velopment in the Better Collec-
tive Group. The Risk Evaluation
is presented to the Board of Di-
rectors annually, for discussion
of and any further mitigating
actions required.
Control activities are performed for the purpose of
preventing, detecting and correcting any errors and
irregularities, including fraud. Control activities are
implemented in the Company’s systems and procedures,
including financial reporting systems and procedures.
Control activities include, for example, physical and
electronic preventive access controls concerning
sensitive and confidential information, preventive IT
based controls limiting access to systems, joint approval
procedures for electronic bank transfers and detective
controls. Financial control activities are performed in
accordance with the group accounting manual and are
carried out on a monthly basis and are documented.
Risk assessment
Risk assessment includes identifying risks pertaining
to the Company’s business, assets and financialre-
porting as well as assessing the impact and probabil-
ity of those risks, to ensure that actions to reduce or
eliminate risks are analysed and implemented. Within
the board of directors, the audit committee is respon-
sible for continuously assessing the Company’s risks
The Board evaluates risk dynam-
ically to cater for this variation
in risk impact. The policies and
guidelines in place stipulate how
Better Collective management
must work with risk manage-
ment.
The division of roles and responsibilities within the
rules of procedure for the board of directors and the
executive management aim to facilitate an effective
management of the Company’s risks. The board of
directors has also established an audit committee
whose main task is to monitor the effectivenessof
Information and communication
Internal communication to employees occurs, inter alia,
through policies, instructions and blog posts, including
The executive management shall annually prepare an
internal risk management assessment which is reported
