Financial Risk Management
The main financial risks that the Investor Group is exposed to are price risks, primarily risks associated with fluctuations in share prices, but also interest rate risks and foreign exchange rate risks. Other risks that arise in the company’s operations include liquidity risks, financing risks, credit risks and operational risks. Activities to manage and monitor risks in the business are carried out through the Finance and Risk Committee, which is an adjunct committee to Investor AB’s board. Among other tasks, the Finance and Risk Committee’s function is to recommend policies and limits for approval by the Board of Directors.
Risk policy
Investor’s risk policy is a framework for determining measurement methods
and mandates for price risks in active portfolio management activities,
cash management and financing activities. The policy also outlines principles
for foreign exchange risk management in connection with investments
and cash flows in foreign currency, measurements and limits for credit risks
and principles for minimizing operational risks in the business.
Risk Management and Compliance
The Risk Management function is responsible for identifying and managing
risks in financial activities, monitoring the compliance of policies and
instructions, continuously developing and improving risk measurement
methodology and ensuring accurate risk reporting.
Treasury funktion
The Treasury function manages interest rate risks, currency risks and
liquidity and financing risks associated with the administration of the liquidity
portfolio and financing activities.
Information updated 2008-03-28 10:30:07