Risk management

Risk management is an essential part of the management, and it ensures that the risks related to the business operations of the company are identified and avoided. Risk management also includes management of risks threatening the attainment of objectives. Business risks are divided into strategic risks, operational risks, and risks related to financing.

Strategic, fundamental business risks such as changes in the business environment, loss of customers, and increases in raw material and other prices are evaluated via risk analyses conducted in connection with strategic and annual planning; the aim is to reduce the risk through contracts and by securing the process by function.

Operational risks such as those related to compliance with the law and other regulations, personnel, property protection, operation of the delivery chain, and security of information systems are managed through the use of total quality management systems, profit/risk analysis, and insurance or other cover.

The company has insurance, financing, credit, and electricity supply polices confirmed by the Board of Directors for management of the financing risks.

The primary duty of the Board of Directors is to assess the risk management and ensure that it is adequate and relevant. The Corporate Executive Team is responsible for implementing the Group’s Corporate Governance rules related to risk management.