Vaisala Corporate Responsibility Report 2011
Vaisala Corporate Responsibility Report 2011
Vaisala Corporate Responsibility Report 2011
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Risk Management<br />
<strong>Vaisala</strong> has a risk management policy that has been<br />
approved by the Board of Directors and covers<br />
the company’s business, operational, hazard and<br />
financial risks. <strong>Vaisala</strong>’s strategic management<br />
group regularly assesses risk management policy,<br />
and the scope, adequacy and focus areas of related<br />
practices. The policy aims at ensuring the safety of<br />
the company’s personnel, operations and products<br />
as well as the continuity of operations. The policy<br />
also covers intellectual capital, corporate image and<br />
brand protection.<br />
Risk management is integrated into business<br />
processes and operations and each employee’s daily<br />
work. The current risk management process was<br />
approved by <strong>Vaisala</strong>’s Strategic Management Group<br />
in 2010. The deployment of the risk management<br />
process has continued in <strong>2011</strong> and now covers half of<br />
the businesses and functions.<br />
Risk is defined as any event, internal or external<br />
to us, which may hinder our ability to achieve our<br />
objectives. Risk, however, may also be taken in order<br />
to gain profits. Risks are not only negative events<br />
leading to losses, also missed opportunities can be<br />
thought as a dimension of risk. At <strong>Vaisala</strong>, risks are<br />
measured in terms of their impact and likelihood and<br />
in relation to the current level of risk management.<br />
The risk management process is a continuous tool<br />
for risk identification and management. The purpose<br />
of the process is to support <strong>Vaisala</strong>’s strategy and<br />
planning process and to provide more information,<br />
supporting better decision making.<br />
Risk Management Process<br />
<strong>Vaisala</strong>’s risk management process consists of risk<br />
identification, risk assessment, risk management<br />
actions, follow-up and risk reporting. Risks are<br />
reported quarterly to the strategic management<br />
group. The most significant risks are reported to<br />
the Board of Directors annually and whenever<br />
necessary.<br />
Business and operational risks are controlled<br />
by identifying the risks and reporting the most<br />
significant of these to the management. Risk<br />
management actions are defined and the obligations<br />
for carrying these out are assigned to the relevant<br />
parties. The Chief Risk Officer (CRO) regularly follows<br />
up the progress of the actions and reports to the<br />
Group Risk Management Committee quarterly and as<br />
needed. The aim is to support the risk awareness of<br />
management and to secure better risk management.<br />
Market<br />
risks<br />
Strategic<br />
risks Liquidity<br />
risks<br />
Political<br />
risks<br />
Credit<br />
risks<br />
Environmental<br />
risks<br />
Financial<br />
Hazard<br />
risks<br />
risks<br />
Enterprise<br />
risks<br />
Business<br />
risks<br />
risks<br />
Operational<br />
Management<br />
risks<br />
Business<br />
environment<br />
risks<br />
Process<br />
risks<br />
Personnel<br />
risks<br />
Risk grouping with some generic risks<br />
Physical<br />
damage<br />
risks g<br />
Legal<br />
risks<br />
IT risks<br />
34 <strong>Vaisala</strong> Oyj <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
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