Annual report 2005 - Sava dd

9. Risk Management
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The competence centre Risk Management has been operating since the end of 2004. Its members, the
representatives of Sava d.d., systematically incorporate risk management in the organisation and day-to-day
business, business functions and processes in all divisions of the Sava Group. In this way the processes that
prior to then were regulated on the basis of quality management certificates, safety systems and various other
methods for risk management have been upgraded.
Risk management has been defined as a continuous and
developing process that should address risks throughout
the Group’s operations methodically and systematically.
The goal is to achieve a sustained benefit within each
operation, perceive risks and capitalise on them.
On account of the systematic risk treatment in the
Sava Group we have designed competitive
advantages such as:
• more successful conformity to shareholder requirements;
• more efficient allocation of free financial resources;
• less possibility of unforeseeable events; and
• less possibility of insolvency.
Based on the adapted risk management standard from
2002 (Risk Management Standard, issue IRM,
AIRMIC, Alarm from 2002) all risks at the level of the
competence centres of knowledge and individual
business functions that in Group companies are covered
by these centres were documented in 2005. We have
prepared a list of risks of importance for all companies
and classified them into opportunities for benefit and
threats to success. Risks have been classified in a
descriptive manner and their impact on operations
measured as well as the factors determined that mainly
affect risk.
Approximately one half of the recorded risks refers to
internal factors determined by business processes, the
organisation and flow of information as well as
acquiring synergies within the Group. Human resources
management and education has a significant effect on
risk management.
Strategic risks
Strategic risks are dealt with together with the
implementation of the vision, mission and goals of the
Sava Group and its individual companies. Boards of
management in the companies together with their
associates deal with this kind of risk.
Operational risks
Individual competence centres of knowledge deal with
operational risks and manage them through their regular
work procedures. Each centre is responsible for
perceiving and controlling opportunities for benefit and
threats to success from their respective field in
accordance with their competences, strategy, goals and
tasks that have been brought into line at the Group level.
Hazard risks
The appearance of hazard risks is a rare phenomenon,
yet it can have serious consequences, therefore we try to
insure against such risk through insurance companies.
The Sava Group has made special contracts with
insurance companies to cover risks that are adapted to
the Group’s operations. The insurance policy is
amended and adapted to requirements at the annual
level. Insurances are mainly concluded for a term of ten
years. We are endeavouring to level the maturity dates
in the Group and shorten the long-term nature of
insurance policies.