Internal control environment at Kuwait Investment Company (KIC) consists of several tools to deal with the main risks the Company is exposed thereto. In this regard, KIC 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.
KIC's management ensures that the powers assigned to the employees conform to their responsibilities, along with an acceptable level of delegation and separation 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, KIC includes a Risk Department, under the Risk Committee, that cooperates with an external consultation firm to 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 comparisonsbeing prepared between actual information and budget information and submitted to the Senior Management for follow-up purposes.
Further, KIC utilizes information technology whenever possible to introduce and process data in 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.