Our internal control system and risk management activities aim to:

• pursue efficient, sustainable and legally compliant operation and development of the airport
• assess and respond to risks in a timely manner, within risk tolerance levels.

Risk management at the airport contributes to the fulfilment of our strategy, the achievement of our objectives and corresponding indicators, and is tailored to the airport’s needs, functions and organisational culture.

The airport’s structure supports transparent financial reporting. Our management board is responsible for:

• ensuring that there is an appropriate record-keeping system
• maintaining the company assets
• detecting and preventing fraud and other violations committed at the airport

In accordance with its regulations, the Finance Department is responsible for the preparation of the financial statements. The Finance Department’s regulations and the job descriptions of its staff undergo regular revisions and, where necessary, are updated in line with the current situation and the requirements of external regulations.

The financial statements are prepared in accordance with the laws and regulations of the Republic of Latvia and the International Financial Reporting Standards (IFRS) adopted in the European Union, including the four-eyes principle. It ensures that the information included in the financial statements is fair, objective, transparent and complete. The airport’s assets and liabilities are valued following the principle of prudence so as not to report assets and revenue as too high, and liabilities and expenses as too low. Appropriate accounting policies are consistently used during the financial reporting period. The decisions and estimations made by the management board in preparing the financial statements have been prudent and reasonable.

To ensure the quality of the financial statements, we pursue the circulation of internal information and communication at all levels of the airport’s structure. We identify and mitigate risks to financial reporting, and identify, assess and mitigate credit risk, liquidity risk, interest rate risk and other financial risks through risk control measures.

The airport’s financial statements are audited by independent, internationally recognised sworn auditors who issue a report stating whether the financial statements give a true and fair view of the airport’s financial standing, performance and cash flows.

We keep accounting records in accordance with:

• the external regulations and internal regulatory documents governing the organisation of accounting
• the International Accounting Standards (IAS) adopted by the European Union

This approach makes sure that all transactions and events taking place as part of the airport’s business are recorded and that all transactions and events during the reporting period are shown in the financial statements.

The accounting and financial management system in place at the airport is automated, enabling accurate and complete financial reporting and efficient collection and analysis of large volumes of information. Our accounting policy ensures that the information included in the airport’s accounts is fair, consistent, timely and relevant, transparent, appropriate and complete.

The ‘State Joint Stock Company Riga International Airport risk management policy’, approved by the airport’s supervisory council, sets:

• common objectives and key steps in the risk management process
• key elements, principles, and types of risk within the risk management system
• roles and responsibilities of the parties involved in the risk management process

The Airport has implemented and maintains an internal supervision system to mitigate the risk of corruption and conflict of interest, including compliance with Cabinet Regulation 630 ‘Regulations regarding the basic requirements for an internal control system for the prevention of corruption and conflict of interest in an institution of a public person’ of 17 October 2017. A plan to mitigate the risk of corruption at the airport, including fraud, has also been prepared.

In line with the strategic internal audit plan and the annual plan, we regularly and systematically conduct internal audits covering the compliance and effectiveness of the financial management process. They provide the airport’s management board, supervisory council and shareholder with reasonable assurance that the system of internal control supervision established to support the financial management process is effective and meets the requirements set in internal and external regulations.