Risks at Investor are managed close to the operation. Risk management is integrated into the company’s activities. The main identified risks at the Investor Group are commercial risks, financial risks (market risks, credit risks, liquidity risks and financing risks), operational risks and legal and regulatory risks.
The Board is ultimately responsible for the company’s risk management activities. The work of the Board’s Finance and Risk Committee and Audit Committee is dedicated to risk management issues. Risk instructions and policies constitute the framework for risk management and this framework and any resulting activities are reviewed and evaluated no less than once a year by the Board.
Important support functions for the Finance and Risk Committee are Risk Management, Internal Control and Group Compliance.
Risk Management is responsible for identifying, estimating, measuring, analyzing, controlling and reporting risks. The function oversees the continuous development and improvement of measures, methods, models, routines, processes and reports concerning identified risks. Furthermore, it is responsible for coordinating risk-related activities with the other functions and units. Risk Management cooperates with Group Compliance and Internal Control. The inputs and feedback from the external audits are an important part of the work of this function.
Compliance assists the company in its compliance with laws and regulations and strives to provide an efficient process for identifying changes in laws and regulations and increasing the awareness of legal and regulatory risks within the company. The Compliance function also monitors the company’s observance of laws, regulations, internal policies and instructions and ensures that internal policies, instructions and activities comply with laws and regulations.
Internal Control is a controlling and auditing function that provides objective support to the Board for the verification of the effectiveness of the company’s internal control structure.
The Internal Control function reports its findings to the Audit Committee.
The Risk Policy and Instructions form the framework for how to manage identified risks and consist of methods, models, measures, routines, processes, limits, mandates, reporting and reporting issues.
Risk Assessment
The identification and evaluation of the Group's risks are carried out on an annual basis at Investor. The annual risk assessment encompasses all of the Group’s processes. It is carried out as a self-evaluation and includes setting action plans to mitigate the identified risks.
Using each business area’s risk assessment as its basis, the Audit Committee then decides which of the identified risks the Internal Control should focus on during the coming review period. Follow-up measures for other risks are monitored by the Finance and Risk Committee. More information about risk management and internal control can be found in the Corporate Governance Report.
The continuous risk assessment
Information updated 2009-11-25 07:39:25