Internal control and risk management systems with regard to the process of preparing financial statements of mBank

The internal control system encompasses the following:

• control function whose task is to ensure observance of control mechanisms concerning in particular risk management at the bank and which covers positions, groups of people and organisational units responsible for performance of tasks assigned to the function. The control function is performed on a regular basis by employees of all organisational levels as part of:
  • ongoing monitoring consisting in examining selected operations or activities performed at the bank beforehand and during their execution, and
  • periodical verification – consisting in verifying selected operations or activities already performed in order to check the adequacy and effectiveness of ongoing monitoring.

• compliance unit, whose task is to identify, asses, control and monitor the risk of non-compliance of the bank’s activities with the law, internal regulations and market standards and report in this respect. Thetasks of the compliance unit are executed by the Compliance Department.
• independent internal audit unit, whose task is to examine and assess, impartially and objectively, the adequacy and effectiveness of the risk management system and the internal control system. The tasks of the independent internal audit unit are executed by the Internal Audit Department.

On the basis of conducted reviews and assessments of control mechanisms’ effectiveness, the Management Board of the bank, the Audit Committee and the Supervisory Board of the bank are provided with:

• information on identified major irregularities in the functioning of control mechanisms immediately after their identification and information on the effects of actions taken in order to remove such irregularities, and
• periodic information concerning the areas of internal control.

The procedures of co-operation of mBank and the external auditor ensure that all the important issues related to the recognition of economic events in the books and financial statements are being consulted on an on-going basis.

The aspiration to ensure the highest standards of financial statements is reflected in the high quality of reporting. In “The Best Annual Report 2016” contest organised by the Accounting and Tax Institute (IRiP), the results of which were announced in October 2017, mBank won the title “The Best of the Best” for the best annual report in the category of financial institutions for the fifth time in a row.