The aim of risk management within HKScan Group is to enable uninterrupted business operations and to safeguard conditions for achieving business objectives.
Risk management is embedded in the HKScan management system and is based on the consistent identification, assessment and reporting of risks throughout the Group. The company’s Enterprise Risk Management (ERM) process aims to systematise risk identification and promote proactive risk management throughout the Group, and to ensure that management and the Board of Directors are in possession of sufficient information about risks to support their decision-making. The risk policy approved by the Board is applied in all operative HKScan Group companies.
The Board of Directors and CEO have responsibility for the strategy and principles of risk management within the Group and for managing risks that threaten the Group’s strategic intents. Operative risks are the responsibility of the heads of the respective market area or the Group function in question. The CFO is responsible for managing financial risks and Group insurance policies.
At HKScan, risks are divided into strategic and operative risks, including economic risks and risks of damage. In the annual ERM process, the company assesses mid-term strategic risks and short-term operative risks. At Group level, the company regularly assesses all significant risks inherent in the material balance sheet and income statement items and determines key controls for risk prevention.
Strategic risks are assessed as a part of the annual strategy process and in connection with major business decisions. Operative risks are assessed not only in connection with the annual plans, but also as part of day-to-day business operations.