Risk Management and Internal Control

Risks related to Saga Furs Oyj’s operations are divided into business risks, hazard and property risks, financial risks and operational risks. Within these risk categories, the Company has specified economic and exchange rate fluctuations, image risks and political risks related to fur breeding and pelt trading, changes in the production of fur pelts and financial risks as the major risks and uncertainties at the moment.

The company seeks to manage and limit the risks by applying a consistent policy, which aims to ensure appropriate risk identification, assessment, management and supervision throughout the Group. It is an integral part of the Group’s planning and management process, decision-making, day-to-day management and operations and supervision and reporting procedures. The risk management process yields information on risks and on the progress of risk management measures, which forms the basis for taking corrective measures if necessary or considering strategy changes.

However, should the risks materialize, they could have a significant adverse effect on Saga Furs Oyjs business, financial position and results.

Due to its small size, the Company does not have a specific organisation for internal control. The Board of Directors familiarises itself with the auditors’ Control Audit Plan and may possibly give an additional report in regard thereto. In connection with the Control Audit, the auditors analyse the company’s and the Group’s accounts, Group-level interim reports and the company’s receivables with the objective of ensuring that the reports published by the company provide correct information about the company’s finance to a sufficient degree. In addition, in connection with the Control Audit, the auditors suggest (and have suggested) ways to develop and improve the company’s internal controls. Based on this, the Board has required and requires the management of the company to develop operational processes and controls.

Insider Management

The Board of Directors of Saga Furs Oyj has approved the Company´s guidelines for insider management on 28 June 2016 and it has been in force since 3 July 2016. The Guidelines for Insiders are based on the Market Abuse Regulation (EU No 596/2014, “MAR”), the laws and supervisory authorities´ guidelines based on MAR, and the Guidelines for Insiders issued by Nasdaq Helsinki Ltd that Saga Furs as a listed company is obliged to follow. Saga Furs complies to MAR regulations and guidelines considering insider projects, the technical procedures of publishing insider information or the postponement of publication, the disclosures of the managers´ transactions, and the form and updating  of insider lists.

Saga Fur has defined the Members of the Board of Directors, their deputies, the Managing Director and the Managing Director´s deputy, as well as persons closely associated with them as detailed in MAR, as managers subject to the transaction notification obligation. As to the trading with Saga Furs´ financing instruments, the managers are to follow a closed period of 30 calendar days before the announcement of an interim financial report or a year-end report. Furthermore, trading will not be allowed on the presentation and sales days of auction held by the Company. In addition to the managers, the Company has defined that also persons preparing the financial reports, the financial report bulletin or half-year reports are to follow the same closed period of 30 calendar days.

The Company does not keep a public register of insiders. All persons participating in eventual insider projects will be added to project-specific and transaction-specific insider lists.

The deputy Managing Director of Saga Furs is in charge of insider management in the Company.


Updated: July 2020