RISK MANAGEMENT

The purpose of risk management is to promote the achievement of the Group’s goals. Risk management aims to proactively identify and manage potential problems and to identify and seize business opportunities. Risk management supports the development and implementation of Aspo Plc’s strategy.

The purpose of risk management is that:

• Aspo Plc has an effective risk management control model, and related processes integrated into its business management.
• Managers have access to high-quality and up-to-date information about business risks and their control measures, providing support for decision-making.
• The probability of the materialization of risks and unexpected events and their impacts on financial performance and reputation can be reduced effectively.
• Risk management measures and selected control measures are based on Aspo Plc’s willingness to take risks and ability to tolerate risks.
• Cooperation in risk management is effective between Aspo Plc’s different businesses.
  
  

The managers of the Group and its businesses are responsible for risk management. They are also responsible for determining sufficient measures and their implementation, and for monitoring and ensuring that the measures are implemented as part of the daily management of operations.

Risk management is coordinated by SVP, Legal and Sustainability, who reports to the CEO.

The Audit Committee monitors the effectiveness of the risk management systems and deals with risk management processes, plans and reports. Each business has a separate risk management program. Business risks and their management are discussed regularly by the management teams of the
businesses. The Group’s shared functions ensure that sufficient risk assessment and reporting procedures are incorporated into the processes they are responsible for. The Group’s administration is responsible for Group-level insurance plans. 

Characteristic risks in each business area are identified in the business units, assessed in the business units’ management teams, and reported to the subsidiaries’ Boards of Directors and, if necessary, also to Aspo Plc’s Board of Directors or the Audit Committee.

Risks are continuously assessed, and their management is discussed in the business units’ management teams. Risk assessments are updated in accordance with Aspo Plc’s management policy, and the most noteworthy findings are presented in the quarterly interim reports. Financial risks, their management principles and the related organizations are presented in the notes to the financial statements.