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. So, 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 2020
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