SWITZERLAND Law and Practice Contributed by: Lorenzo Olgiati and Pascal Hubli, Schellenberg Wittmer Ltd
ity lies with the board of directors. An exception applies to banks and private insurance com - panies, for which FINMA has set forth specific requirements regarding risk management and internal controls in the relevant circulars ( “Cor- porate Governance – banks” and “Corporate Governance – insurers” , respectively). Such companies additionally have to report on the company’s risk assessment process and the identified material risks in the management report accompanying the annual financial state - ments. These provisions should ensure that the corporate risk of medium-sized and large enter - prises is regularly monitored and analysed. The ultimate responsibility lies with the board of directors, which has to evaluate material busi - ness-related risks in a forward-looking and sys - tematic manner.
In addition, the SCBP also recommends that the board of directors should provide internal control and risk management systems that are suitable for the company; it should encompass risk man - agement, compliance and financial monitoring. In addition, the effectiveness of the internal con - trol system should be assessed by an internal audit.
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