Annual Report 2010 - Outokumpu

146
The stakeholder perspective
To widen general appreciation of risks within Outokumpu and to help in mitigating possible impacts, the Group also
monitors potential risks from a corporate responsibility perspective. Typically these are operational risks.
The following tables provide some examples of risks which could, if realised, also have a significant impact on
Outokumpu's stakeholders.
Key risks
Key risks (examples)
Strategic and business risks, such as overcapacity in stainless steel production and eurocentricity
Risks associated with investment projects
Radical changes in environmental legislation
Major fire or accident
Possible impacts
Impacts on communities if Outokumpu is not able to achieve its financial targets and is therefore forced into
actions such as reductions to the Group workforce, layoffs and reduced orders to suppliers.
Impacts on communities if major investment projects are postponed or severely delayed: Outokumpu will not
be able to provide the expected levels of employment and tax revenues.
Possible impacts on communities and on Outokumpu's ability to provide employment if demand for stainless
steel is dramatically weakened by radical changes in legislation or regulation regimes.
Major catastrophes and severe interruptions to Outokumpu's business may affect employees, contractors,
suppliers and downstream businesses. Possible impacts on nearby communities if toxic emissions result
from a fire or accident.
Actual and planned responses
Strategy update completed in Q3 2010.
Developments in supplier audits and business continuity management to reduce supplier dependency.
Outokumpu manages project risks by providing dedicated resources for overall project support and
management.
Outokumpu Annual Report 2010 – Corporate Governance – Risks and stakeholders