Risk management
Risk management is an essential part of Pöyry's business management and procedures, whose aim is to safeguard Pöyry's business as well as a good financial position and operating profit. Ultimately, the Board is responsible for the Pöyry Group's risk taking, and the President and CEO for risk management.
Policy and instructions
Pöyry has a Risk Management Policy approved by the Board, which defines the objectives, principles, operating procedures, organisation and responsibilities of risk management and its reporting and follow-up procedures. In addition, the Group has more detailed Risk Management Instructions for the day-to-day business, which are based on the Risk Management Policy.
Organisation
Primary responsibility for risk management rests with the business groups, where risks also primarily accrue. Each business group is responsible for its own risk management, taking into account the Group's and the business group's risk management guidelines. The President of each business group is responsible for his/her own business groups' risk management. Each business group has its own risk manager who is responsible for organising risk management in practise.
The Group is responsible for group-wide risk management guidelines and risk management, and for the guidance and supervision of the business groups' risk management. The Group's risk manager is responsible for organising the group-level risk management in practise.
Process
Pöyry's risk management consists of a co-ordinated set of activities to identify, assess, address and control all major risk areas of the Group in a systematic and proactive manner. Risks are addressed in accordance with the following main risk categories.
- External risks
- Internal risks
- Strategic risks
- Operational risks
- Financial risks
A uniform risk management process is conducted annually in the Pöyry Group in connection with the strategy process. In the risk management process, each business group makes its own short-term and long-term risk assessment independently. The Group Executive Committee then makes an overall risk review and consolidation.
Reporting and follow-up
The results and most significant risks identified in the annual risk management process are reported to the Audit Committee and the Board in the second half of the year. Apart from the annual risk management process, the status of the Group's risk management is reported to the Audit Committee in the first half of the year. The business groups report on their risks and actions related to these to the Group Executive Committee on a monthly basis as a part of the business report.
Risks
Typical risks related to Pöyry's business operation are described on the pages External risks and Internal risks. The most significant risks identified in the 2007 risk management process are described in the Board of Director's Report. |
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