In control statement
FMO has internal risk management and control systems that enable us to take risks and control them and that are based on international best practices.
Adequate internal risk management and control systems support the attainment of objectives in the following categories:
Realization of strategic and business objectives;
Effectiveness and efficiency of processes;
Reliability of financial reporting; and
Compliance with laws and regulations.
The Management Board regularly considers the design and operation of FMO’s internal risk management and control systems (taking into account the approved risk appetite) and discusses all related significant aspects with senior management. The results of the Management Board’s monitoring of FMO’s internal risk management and control system – including significant changes and planned major improvements – and the defined risk appetite are discussed with FMO’s Audit & Risk Committee, which reports these to the Supervisory Board.
Based on our monitoring of the company’s internal risk management and control systems, and cognizant of their inherent limitations described below, we have concluded that FMO is in compliance with the requirements of best practices 1.4.2 and 1.4.3 of the Dutch Corporate Governance Code. The Management Board makes the following statement:
As Management Board of FMO, we are accountable for internal risk management and control systems within FMO.
Based upon our assessment of the internal risk management and control systems of FMO and barring unforeseen adverse external and internal conditions, we are of the opinion that:
The management report provides sufficient insights into any failings in the effectiveness of the internal risk management and control systems;
The aforementioned systems provide reasonable assurance that the financial reporting does not contain any material inaccuracies;
Based on the current state of affairs, it is justified that the financial reporting is prepared on a going concern basis; and
The report states those material risks and uncertainties that are relevant to the expectation of the company’s continuity for the period of twelve months after the preparation of the report.
Reference is also made to the 'Risk management' chapter for an explanation on FMO’s Risk management framework, which adheres to the three lines model.
We note that the proper design and implementation of internal risk management and control systems significantly reduces, but cannot fully eliminate, the possibility of poor judgment in decision-making, human error, control processes being deliberately circumvented by employees or others, management overriding controls, or the occurrence of unforeseeable circumstances.
Another limiting factor is the need to consider the relative costs and benefits of risk responses. Properly designed and implemented internal risk management and control systems will therefore provide reasonable, but not absolute, assurance that FMO will not be hindered in achieving its business objectives, or in the orderly and legitimate conduct of its business.
Responsibility Statement
We have committed to ensuring, to the best of our abilities, that this report was prepared and is presented in accordance with the Integrated Reporting framework and that the integrity of all information presented can be assured. In accordance with article 5:25c sub 2 part c of the Dutch Financial Supervision Act, we state that, to the best of our knowledge:
The financial statements give a true and fair view of the assets, liabilities, financial position and profits of FMO and its consolidated companies;
The annual report gives a true and fair view of the position on the balance sheet date and developments during the 2023 financial year of FMO and its consolidated companies; and
The annual report describes the material risks that FMO faces.
The Hague, March 22, 2024
Fatoumata Bouaré, Chief Finance & Operations Officer
Franca Vossen, Chief Risk Officer
Huib-Jan de Ruijter, Co-Chief Investment Officer
Michael Jongeneel, Chief Executive Officer
Peter Maila, Co-Chief Investment Officer