The purpose of risk management is to contribute to the achievement of the Group’s goals. Risk management aims to proactively identify and manage potential problems and to identify and use business opportunities. Risk management supports the development and implementation of Aspo’s strategy.
The purpose of risk management is that:
- Aspo has an effective risk management control model, and related processes integrated into Aspo’s business management.
- Managers have access to high-quality and up-to-date information on business risks and their control measures, providing support for decision making.
- The probability of the realization of risks and unexpected events, and their impact on finances and the reputation can be reduced effectively.
- Risk management measures and selected control measures are based on Aspo’s willingness to take risks and ability to tolerate risks.
- Cooperation in risk management is effective between Aspo’s different businesses.
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 daily management of operations. Risk management is coordinated by the Group’s Director of Legal Affairs 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 management teams of 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 unit management teams, and reported to the subsidiary Boards and, if need be, also to the Aspo Board of Directors or the Audit Committee. Risks are continuously assessed and their management is discussed in the business unit management teams. Risk assessments are updated according to Aspo’s management policy and the most noteworthy findings are presented in the quarterly interim reports.
Financial risks, their management principles and related organization are presented in the notes to the financial statements.