Effective risk management is a key success factor for realizing our strategic objectives. ASMI has implemented an internal risk management and control framework to identify risks and opportunities that may impact us and to take appropriate mitigation initiatives.
ASMI's risk management and control framework is based on the COSO reference model and is an integral part of our Corporate Governance Framework. The Corporate Governance Framework describes how ASMI's strategy, mission, vision, and objectives are embedded across the organization.
Our Code of Ethics sets clear standards in different areas of business life. Its purpose is to provide a clear, strong, and consistent culture of ethics that apply to all who work at ASMI. ASMI's policies and regulatory framework guide how we work. Key components are our financial, IT, product safety, EHS, compliance, and business continuity frameworks which are supported by transparency and accountability through our monthly business review cycle and our internal control framework.
The objective of the risk management and control framework is to identify and manage the strategic, operational, financial, and compliance risks to which ASMI is exposed. In addition, the framework enables us to improve effectiveness and efficiency in our operations and it promotes reliable financial reporting, and compliance with laws and regulations.
Our risk management and internal control activities are organized through the three lines of defense model; the Management Board is ultimately responsible for risk management and compliance in line with the risk appetite and is supported by:
ASMI strives for a culture of openness and transparency in which identified risks are disclosed proactively and unexpected events are reported as soon as they occur. We aim to continually increase risk awareness and to make it an integral part of the company culture. Our Code of Ethics applies to all ASMI employees and temporary staff and describes how we work in an open, transparent, honest, and socially responsible way. The effectiveness of, and compliance with, the Code is enabled through annual online training and assessed by actively detecting and investigating any alleged misconduct and taking appropriate disciplinary action if misconduct is substantiated.
Undertaking business activity inevitably leads to taking risks. Each type of risk encountered is dealt with in a manner that matches the risk appetite established by the Management Board. Risk appetite is the level of risk we deem acceptable to achieve our objectives. ASMI’s risk appetite is primarily determined based on the defined and agreed strategy and the individual objectives within this strategy. Risk appetite is further guided by our Code of Ethics as well as detailed policies and procedures. The risk appetite is the total residual impact of the risks that ASMI is willing to accept in the pursuit of its (strategic) objectives. The risk appetite per objective or risk area is determined annually by the Management Board. Overall, ASMI's risk appetite in 2018 did not change significantly compared to 2017.
The nature of the risk is a key determinant of our risk appetite:
Every year we assess the risks that could impact achievement of our strategic objectives at a consolidated level (top-down approach) and on a segment level (bottom-up approach). If necessary, we implement countermeasures to mitigate the risks within the defined risk appetite, and integrate these countermeasures in our risk management and control framework, which contains all mandatory corporate policies and operating procedures.
Business management provides the Management Board with a quarterly assurance letter regarding the reliability of their financial reporting, the effectiveness of their internal controls, risk management, and compliance with internal policies and laws and regulations.
The Management Board is responsible for ASMI’s internal risk management and control framework. This system is designed to manage the main risks that may prevent ASMI from achieving its objectives. The internal risk management and control framework, and the evaluation of the effectiveness of our internal controls and areas for improvement, are regularly discussed with the Audit Committee and KPMG Accountants, our external auditor. The Audit Committee reports on these matters to the Supervisory Board.
The Management Board conducted an assessment of the design and operating effectiveness of the internal risk management and control framework. Based on this assessment and the current state of affairs, to the best of its knowledge and belief, the Management Board confirms that:
All internal control systems, no matter how well designed and implemented, have inherent limitations. Even systems determined to be effective may not prevent or detect misstatements or fraud, and can only provide reasonable assurance with respect to disclosure and financial statement presentation and reporting. Additionally, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to changed conditions and that the degree of compliance with the policies or procedures may deteriorate.
In view of all of the above, the Management Board believes that it complies with the requirements of best practice provision 1.2 and 1.4 of the Dutch Corporate Governance Code.
Over the past 50 years we have grown to become a leading global supplier
of semiconductor wafer processing equipment. A company that develops
innovative process solutions for our customers, and manages itself in the best
interests of our investors, our employees, society, and other stakeholders.
Yet now is the time to enter a new era of innovation, to embark on the next
phase of growth. We understand that this requires commitment and strength
across many areas. From innovation in R&D, to advancing new technologies
and addressing new applications. From developing our people, to creating
even stronger relationships with key customers.
This is how we will take the next leap forward.
ROADMAP TO THE FUTURE
Our roadmap to the future will enable us to not only
achieve our next phase of growth, it will ensure we
can continue to help our customers achieve their
technology roadmaps for next-generation devices.
Our technology helps drive innovation, increasing the number of scientific breakthroughs, many of which are achieved from our advanced process equipment that deposits new materials with precision and productivity, positively benefiting society in sectors from healthcare and education, to transport and energy.
For semiconductor manufacturers, scaling chips
to smaller dimensions is an ongoing challenge.
Our innovations and equipment are vital in helping make many of these transitions happen.
Striving for efﬁciency ensures that our
customers get the products, services,
and results they expect. Intensifying
our focus on efﬁciency will make us a
stronger company, ready to take the
next leap forward.
We are a multinational company that
embraces diversity in every sense
of the word. With 29 different
nationalities working across the
company, we combine our talents
to drive innovation.
Achieving our ambitions takes intelligence, knowledge, skill,
determination, and dedication. And it is this combination of
qualities that we nurture in our people.
Our goal is to impact tomorrow’s generation
as positively as we’ve impacted today’s.
Making this happen takes the xtraordinary
talent of our people, who work together
to drive innovation and deliver excellence.
Collaboration is fundamental to our
continued success; from working
with our customers to optimize our
equipment and processes to enable
their technology roadmaps, to
creating partnerships on cutting-edge
research and development.
Operational excellence is one of the essential
pillars of our strategy, which enables us to provide
our customers with the high-quality, leading-edge
products and services they demand.
R&D is central to our development,
leading to new device architectures,
new materials, and new processes
that strengthen our competitive
positioning and enable our customers
to deliver the next-generation chips.
By extending our technological scope with a
more diverse product portfolio, we can help our
customers continue to advance their business
while growing our own in new market segments.
We create long-term value for our
stakeholders in a variety of ways.
From working with our customers
to develop innovative solutions, to
ensuring value creation growth
and positive investor returns.
We are committed to positively
contributing to society and
reducing our impact on the
environment. Only then can
we truly say we are helping
create more with less.
We believe sustainability takes many forms.
From developing sustainable technology
roadmaps for our customers, to creating
a sustainable living environment for all.
Safety is a front-line requirement,
which is why our ZERO HARM!
policy outlines our vision on product
safety, and our CR policy lays out
our commitment and expectations
towards health and safety.