MONITORING AND REPORTING SYSTEM

The principal task of the statutory audit is to verify that the financial statements give accurate and sufficient information about the Group's result and financial position for the financial year. The auditors report their findings to the Board of Directors once per year and submit an auditors' report to company's shareholders in connection with the annual financial statements.

Finnair Plc's Management Group acts as a Risk Management Steering Group, chaired by the President and CEO, whose task is to assess and ensure that the Group's risk management, monitoring and management processes are sufficient, appropriate and effective.

The Board of Directors of Finnair Plc has approved principles of internal monitoring, which are applied within the Group. Internal auditing is responsible for fulfilling the monitoring and auditing obligation laid down in the Companies Act.

Internal auditing assists in verifying the integrity of transactions and the accuracy of information in internal and external accounting and in confirming that controls are exercised effectively, property is maintained and operations are conducted appropriately in accordance with the Group's objectives. Internal auditing also participates in the auditing of Finnair Plc subsidiaries' accounts in collaboration with external auditing. The internal auditing priorities are determined in accordance with the Group's risk management strategy.

The fulfilment of financial targets is monitored by a system of Group-wide reporting. The reporting encompasses realised data and up-to-date forecasts for a rolling 12-month period. The accumulation of financial added value is monitored monthly in an internal reporting process. The Group's traffic performance is published in a monthly stock exchange bulletin.

Risks arising from operations in relation to property, disruption, damage and liability risks have been covered by appropriate insurances.