Annual Report 2010 - Outokumpu

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results and risk updates also support internal and external risk reporting by ensuring that accurate information is provided
both internally to business unit management teams and the Group Executive Committee, and to external parties such as
shareholders and other stakeholders.
Focus areas
Risk workshops
Risk workshops covering risk identification, evaluation, prioritisation and mitigation were successfully implemented with
management teams in most Outokumpu's business units during 2009. This work continued in 2010 within a number of
Group functions including the Corporate Controller's Office and Group Sales and Marketing.
Management of credit risks
In 2010, the availability of insured credit limits improved, and Outokumpu's exposure to customer credit risks was
reduced. The rate of overdue receivables declined.
Fire safety
Fire safety is systematically audited in accordance with a survey programme linked to the Group's insurances. In 2010,
some 30 audits were conducted in co-operation with insurers and insurance brokers. Progress in fire safety during 2010
included also the development of new internal fire safety standards.
Realised risks
No major damage to Group property or business interruptions occurred in 2010. The most significant risks realised in
2010 were associated with structural issues in stainless steel markets, with the continuing influence of the global
economic downturn and with adverse movements in some currencies important to the Group. All of these had a negative
impact on Outokumpu's profitability and gearing.
Outokumpu Annual Report 2010 – Corporate Governance – Risk management