Risk management
Insurance programs
We have prepared for property, business interruption, transport and liability risks through local and global insurance schemes.
Risk map
We categorize our risks on the risk map and define risk management tools, practices and responsible parties. We update the map at least once a year.
Risk assessments
We conduct an annual risk assessment to identify key risks. In the assessment, the significance of the risk and whether measures are evaluated.
Crisis management
The primary goal of our crisis management is to reduce the damage or number of people involved. We also aim to reduce the adverse financial and reputation impacts, rectify damages and restore operations to normal.
Remedies
The businesses' operative management ensures together with the Management Team ensure that our businesses initiate measures based on the results of the risk assessment.
Other enforcement processes
Our internal control systems aim to ensure the reliability of our financial reporting. We systematically monitor factors that potentially affect our reputation.
Management systems
Our quality and environmental management systems are based on ISO 9001 and ISO 14001 and our occupational health and safety systems standards.
Risk management evaluation
Our businesses work with an external insurance broker to evaluate the functionality of risk management at our key units.
Enterprise risk management supports the achievement of strategic goals
Valmet uses risk management to support the achievement of its strategic and business goals and to ensure the continuity of its operations also in changing circumstances. We believe that ability to take risks and manage them effectively is an essential element of business success and shareholder value creation.
We define risks as uncertainties, which, if materialized, can either positively or negatively impact our chances of achieving our goals. Hence risk is either an opportunity or a threat, or a combination of them. We assess the significance of a risk as a combination of probability and consequences of the occurrence.
Our comprehensive risk management approach emphasizes anticipation of risks and proactive actions and strives for a systematic, structured and timely approach. Risk management is embedded in all of our daily operations. Our risk management is established on the requirements of the ISO 31000 standard.
Read more in Valmet Risk Profile 2024
Goals of risk management
The goals of our risk management are to
• strengthen our ability to achieve our strategic targets and business objectives
• ensure the continuation of our operations
• support our strategic and operative decision making and planning
• increase our agility to take advantage of risks
• improve our organizational awareness, learning and resilience.
• help us to comply with legal and regulatory requirements and international norms
• improve our governance and controls
• minimize the negative effects of the risks on our operations
• help us to avoid hazard risks
• increase internal and external stakeholder confidence
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