4.11In Control Statement
The Management Board is responsible for establishing and maintaining adequate internal risk management and control systems. The implementation of the internal risk management and control framework at SBM Offshore focuses on managing both financial risks and operational risks. As a key part of its scope, Risk Management is responsible for the design, monitoring and reporting on the internal control framework.
During 2015, various aspects of risk management were discussed by the Management Board. The responsibilities concerning risk management, as well as the lines of defence were also discussed with senior management. In addition, discussion on the internal risk management and control systems with the Audit Committee, the Supervisory Board and with the Company’s external auditors took place.
During the period, several initiatives strengthening internal control across group activities materialized. The completion of the Odyssey 24 Program enabled significant business improvements involving systems, process and procedures. Additionally various improvements affecting IT control environment and financial reporting occurred.
In line with the adoption of the Dutch Corporate Governance Code, SBM Offshore prepared the In Control Statement 2015 in accordance with the best practice provision II.1.5. With due consideration to the above, the Company believes that its internal risk management and control systems provide reasonable assurance that the financial reporting does not contain any errors of material importance and that the internal risk management and control systems relating to financial reporting risks worked properly in 2015.
However, the Company cannot provide certainty that its business and financial strategic objectives will be realized or that its approach to internal control over financial reporting can prevent or detect all misstatements, errors, fraud or violation of law or regulations. Financial reporting over 2015 was based upon the best operational information available throughout the year and the Company makes a conscious effort at all times to weigh the potential impact of risk and the cost of control in a balanced manner.
With reference to section 5.25c paragraph 2, sub c of the Financial Markets Supervision Act (Wet op het financieel toezicht), the Management Board states that, to the best of its knowledge:
- The annual financial statements for 2015 give a true and fair view of the assets, liabilities, financial position and profit or loss of SBM Offshore and its consolidated companies
- The Annual Report gives a true and fair view of the position as per 31 December 2015 and that SBM Offshore’s development during 2015 and that of its affiliated companies is included in the annual financial statements, together with a description of the principal risks facing SBM Offshore
P. van Rossum
Schiphol, the Netherlands
10 February 2016