Risk management
All business activities involve risks which affect the ability to achieve the strategic goals. Risk management is therefore a continuous process in the daily business. Proactive risk management is crucial for successful governance and operations. The Board and Executive Leadership Team frequently follow up on limits and risk exposure.
Risk management
The Board is responsible for ensuring effective risk management to reach the ultimate target of generating an attractive total return. Risk management is an integral part of the Group’s processes and is kept close to business operations. The Board has adopted policies with risk levels, mandates and limits for the parent company and its business areas, while the boards of the subsidiaries decide and follow up on policies that have been adapted to manage the risks in their respective businesses.
Risk management is conducted continuously in the day to day business at Investor and in the portfolio companies. A comprehensive risk assessment is made annually to identify and evaluate existing and emerging risks. This assessment encompasses all categories of risks and involves the Executive Leadership Team, representatives from the whole organization as well as input from the subsidiaries. Material risks are compiled in a company-wide risk map. When needed, action plans are defined and implemented to minimize the probability and impact of identified risks. The conclusions drawn from the risk assessments are discussed and confirmed with the Board.
The CEO and Executive Leadership Team continuously follow up on the implementation of action plans and report back to the Board. Material risks that impact Investor, fall within different risk categories and are described on the following pages. These risks can individually, or in combination, have a major negative impact on the business and the ability to grow net asset value and pay a steadily rising dividend. Actions to mitigate these risks are crucial and part of the everyday business at Investor.
