Internal control environment at Kuwait and Middle East Financial Investment Company “KMEFIC” consists of several tools to deal with the main risks the company is exposed thereto.
In this regard, KMEFIC has established various committees to supervise its operations, roles and responsibilities, in addition to establishing an approved organizational structure and a departments’ structure that outlines their powers and segregates their functions, roles and responsibilities, subject to review from time to time. KMEFIC’s management ensures that the powers assigned to the employees conform to their responsibilities, along with an acceptable level of delegation and segregation of duties. Employees’ powers and responsibilities are subject to periodic review in accordance with business requirements and any changes that may occur in the organizational structure.

Additionally, KMEFIC includes a Risk Department, under the Board Risk Committee, that develop a management system and certain tools to support the operation of the Department.

Control activities of the Company are mainly based on internal discretionary control and auditing tools, in addition to compliance with the local legislations. This in addition to monthly comparisons being prepared between actual data versus budget data and submitted to the Senior Management for follow-up, and monitoring purposes.

Finally, KMEFIC utilizes information technology whenever possible to introduce and process data through different departments, as well as to reduce potential errors. The majority of the core business processes, such as investments, general ledgers, clients, accounts and management information system, are being implemented through automatic applications.