The Group's operations are controlled and steered by means of the corporate governance system.

The Group is organized into operational business units providing clear channels of financial responsibility
within the Group and promoting supervision of the operations and administration of the Group's different parts.
Outokumpu employs the reporting systems required for operational business control and effective monitoring
of the Group's assets and interests.

Ultimate responsibility for accounting and financial controls rests with the Board of Directors. It is the CEO's
duty to attend to the practical arrangements concerning accounting and the control mechanism. Realization
of the objectives set is monitored monthly by means of an operational planning and financial control
reporting system. In addition to actual data, the system provides up-to-date forecasts and plans for the
current year and the next 12 months. The accumulation of economic value added (EVA) is monitored
in Outokumpu's internal quarterly reports and this information is published in the Annual Report. The Board
of Directors has the ultimate responsibility for the Group's risk management.

The CEO and the Group Executive Committee are responsible for defining and implementing risk management
procedures and ensuring that risks are taken into account in the Group's strategic planning. The Business
Units are responsible for managing the risks related to their own operations.

The Group's risk management function supports the implementation of risk management policy and develops
practical ways of working. External and internal auditors monitor the proper functioning of the risk management
process. Outokumpu has classed risks that affect its operations in three categories: risks relating to strategy
and business, operational risks and financial risks. Risk management is discussed in more detail in the annual
report on pages 44–45. Financial risks are discussed in more detail in note 20 to the financial statements
in the annual report.

The internal audit function provides consultative auditing on areas and matters that are agreed separately
with the Board Audit Committee and the Group Executive Committee. The focus of the audit is on business
risks and on the sharing of information. The internal audit acts in close cooperation with the Group's
finance and risk management function, financial and business control and the external auditors. The internal
audit function operationally reports to the Board Audit Committee. The CEO, members of the Group Executive
Committee and other managers working at Corporate Management are responsible for ensuring that
day-to-day operations of the Group comply with existing laws and regulations, the Company's operating
principles and decisions by the Board of Directors.