Risks and risk management
Sponda has adopted a systematic approach to risk management and one of the company’s key strengths is its ability to integrate risk management into its strategy process, the enterprise resource planning system and business processes.
The responsibility for risk management is determined in accordance with business responsibility. The ultimate responsibility for risk management lies with the Board of Directors, which sets risk management objectives, decides on risk management policy, organises risk management and monitors key risks. Business units and corporate functions are responsible for arranging for risk management to be monitored and reported as part of the company’s other reporting activities. The company’s internal audit function monitors the effectiveness of the risk management system.
Risk management is assessed in a risk survey carried out once a year. The risk survey identifies the company’s key risks, assesses the probability of their occurrence and potential impacts thereof, and defines risk management procedures. The risk survey also includes an assessment of the company’s approach to risks.
Sponda’s toolbox of risk management includes risk aversion, risk elimination and reducing the probability of their materialisation. Risks can also be restricted and reduced. A business continuity and recovery plan has been prepared for the contingency that substantial risks materialise.
Key risks pertaining to the company’s operations are described in the Board of Directors’ report.