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Specification of Competencies required for the Supervisory Board, including recommend- ed adjustments to the Company’s objectives for diversity at relevant management levels. 

The Committee also considered succession planning at Executive Committee, Executive Board and Supervisory Board level and consid- ered the outcome of the Board evaluation and made recommendations to the Board. Finally, the Nomination Committee advised and made recommendations to the Supervisory Board with regard to candidates for the Supervisory Board and Executive Board, if relevant. 

At the recommendation of the Nomination Committee, one new candidate was recom- mended by the Supervisory Board to the Annual General Meeting in March 2013 as a new member of the board. 

## The Remuneration Committee 

The Remuneration Committee is described as part of the Remuneration report on pages 43-48. 

## THE EXECUTIVE BOARD 

The Supervisory Board appoints the CEO and other members of the Executive Board. Led by the CEO, the Executive Board is responsible for the preparation and imple- mentation of strategic plans. 

The Executive Board consists of two persons: Jørgen Buhl Rasmussen, President & CEO, and Jørn P. Jensen, CFO & Deputy CEO. 

The members of the Executive Board are not members of the Supervisory Board but do attend Supervisory Board meetings. 

The Company also has a wider Executive Committee, which consists of eight individu- als in addition to the two Executive Board members. The composition of the Executive Committee can be seen on page 49. 

## AUDITING 

To safeguard the interests of shareholders and the general public, an independent auditor is appointed at the Annual General Meeting following a recommendation from the Supervisory Board based on a proposal from the Audit Committee. Before making its recommendation, the Supervisory Board un- dertakes a critical evaluation of the auditor’s independence, competence etc. 

The auditor reports any significant findings regarding accounting matters and any signifi- cant internal control deficiencies to the Su- pervisory Board via the Audit Committee and through its written long-form audit reports to the Supervisory Board, which are issued at least twice a year. The auditor takes part in all Audit Committee meetings and at least the Supervisory Board meeting at which the Annual Report is discussed and approved. 

## INTERNAL CONTROL AND RISK MANAGEMENT RELATED TO THE FINANCIAL REPORTING PROCESS 

## Overall control environment 

The Supervisory Board and the Executive Board have overall responsibility for the Group’s control environment. The Audit Com- mittee appointed by the Supervisory Board is responsible for monitoring the internal control and risk management systems related to the financial reporting process on an ongoing basis. 

The Company has a number of policies and procedures in key areas of financial 

reporting, including the Finance Manual, the Controller Manual, the Chart of Authority, the Risk Management Policy, the Treasury Policy, the Information Security Policy and the Business Ethics Policy. The policies and procedures apply to all subsidiaries, and similar requirements are set out in collabor- ation with the partners of the joint ventures. 

The internal control and risk management systems are designed to mitigate rather than eliminate the risks identified in the financial reporting process. Internal controls related to the financial reporting process are established to mitigate, detect and correct material misstatements in the consolidated financial statements. 

The monitoring of risk and internal controls in relation to the financial reporting process are anchored by the reporting of the matur- ity level of the control environment using Carlsberg’s financial control framework. 

## Risk assessment 

The risk assessment process related to the risk in relation to the financial reporting process is assessed annually and approved by the Audit Committee. 

The risk related to each accounting process and account in the consolidated financial state- ments is assessed based on quantitative and qualitative factors. The associated financial re- porting risks are identified based on the evalu- ation of the impact of the risks materialising and the likelihood of the risks materialising. 

The identified areas are divided into accounts with high, medium or low risk. High-risk areas are accounts that include significant accounting estimates, including goodwill 

