Risk Management
Board of Directors is responsible of ensuring that Stonesoft's overall risk management and related policies are in place. Co-ordination of risk management policy is the responsibility of the Chief Financial Officer (CFO). Policy and function aim at ensuring the attainment of company's business objectives and the continuation of its operations.
The Chief Financial Officer, as the co-ordinator of corporate risk management, creates corporate-level risk management principles, develops risk management tools and establishes global insurance policies. Business units must adhere to the corporate level policies and proactively contribute to the development of corporate risk management. Risk management function concentrates on (i) evaluation and management of operational risks (ii) management of financial risk and (iii) management and safeguard of critical business-related information and assets.
Operational risks
Stonesoft constantly develops its sales processes and related control systems. The product sales and related services sales are made mainly through a global channel partners, using standardized Stonesoft agreements. The sales operations are supported by the company's internal legal unit seeking to reduce the risks related to the global business operations through continuous management and development of contracts. The company also uses insurance to cover the operational risks.
Financial risks
Stonesoft does not provide financing, other than generally accepted terms of payment, to its customers. The company invoices mainly in Euros, the US dollar being the other invoicing currency. The company's costs occur mostly in Euros. Exchange rate fluctuations can affect the company's financial results. The company uses matching as a main tool for offsetting the exchange rate risks.
The task of Stonesoft's Corporate Treasury is to manage financial risks in accordance with the Treasury Policy approved by Stonesoft's Board of Directors. The main principles of the policy are: (i) to ensure the short-term liquidity of the company, (ii) to guarantee efficient circulation and short-term investments of the operational cash flows and (iii) to follow prudent and transparent investment policy for the cash reserves, aiming at guaranteeing competitive return on a selected risk level. The company's reserves are all invested on interest bearing low risk instruments.
The company's operations and related costs are continuously controlled. As a result of its small size the company does not have a separate internal audit organization or a separate audit committee.
Management and safeguard of critical business related information and assets
Stonesoft manages and safeguards its critical business information by stringent internal policies and processes. The company constantly reviews and updates its network infrastructure and guarantees the safety of its business-critical information. The company has made plans to ensure business continuity during the unexpected.