Risk management

Risk management is an integral part of running the business of Suominen, and the identification and assessment of risks is an essential element of internal control. The aim is to focus on material risks that are significant from a business perspective. 

The risk management process is based on Suominen’s Risk Management Policy, which is approved and regularly reviewed by the Board of Directors. The process consists of steps to identify, assess, respond, monitor and report risks. Identification and assessment of risks involves a dynamic and iterative process to identify and evaluate risks, and it provides the foundation for defining and monitoring mitigative actions for each identified risk. A risk owner is assigned to each identified risk. The most significant risks are reported annually to the Audit Committee and additionally to the Board as needed. 

Risks relating to financial reporting are managed in accordance with the risk management process outlined in the Risk Management Policy. Risks pertaining to financial reporting are identified and evaluated addressing the risks for the most relevant parts of the financial reporting process. Based on this evaluation, appropriate mitigation measures are defined and their effectiveness is continuously monitored.

The responsibilities relating to risk management are outlined in the Risk Management Policy. The Board of Directors is responsible for monitoring the evaluation and management of significant risks relating to Suominen’s strategy and business operations. The Audit Committee assists the Board in its duties relating to risk management and is responsible for monitoring the risk management processes and practices. The CEO has the overall responsibility for risk management at Suominen and is supported by the Executive Management Team members, which are responsible for identifying and assessing risks within their own area of responsibility. 

Updated on March 14, 2024