Three Lines of Defence at Betsson
The proper governance of Betsson Group includes clear and efficient risk management which constitutes an integrated part of how our business is run.
To achieve efficiency and clarity of the roles and responsibilities in relation to risk management and control, the Group applies the “three lines of defence” model, as explained below.
First Line of Defence
In Betsson Operations, the operational management has ownership for all risks and therefore responsibility for risk management. This responsibility includes the identification, assessment, and mitigation of risks through the implementation of a solid internal control environment.
The internal control environment is supported by documented procedures to ensure that risks are managed within set risk appetite and tolerance levels.
Second Line of Defence
The Governance, Risk and Compliance (“GRC”) function is responsible for ensuring the Group’s Risk Management Framework. The GRC function facilitates the Enterprise Risk assessment, which is a structured self-assessment exercise with the involvement of the Group and Operational management teams together with additional key employees as risk owners. This is carried out annually and updated quarterly with reporting to the Operational Management team, the Group Management team, and the Audit Committee in Betsson AB.
Within the process, relevant risks are identified and assessed in terms of probability and impact. The control environment is also assessed and rated to arrive at a residual risk rating. Based on the outcome, action plans are developed to ensure that residual risks are kept within the risk appetite and tolerance levels.
Third Line of Defence
The Internal Audit function is an independent, group-wide, assurance function operated under the direct responsibility of the Audit Committee. As the third line function, the function is responsible for evaluating governance, risk management and control processes throughout Betsson Group, covering both first and second lines of defence.
Other Audits and Reviews
Betsson’s framework and risk management process are frequently evaluated by independent external auditors (both statutory auditors and external auditors appointed in fulfilment of licensing requirements) and by the authorities monitoring Betsson’s gaming licenses.