Risk management is a part of Metsä Board’s management throughout the organisation: planning, daily management, development investments and other significant change projects. The effective integration of business management and risk management is based on operating principles approved by the company's Board of Directors, the purpose of which is to keep the overall risk management clear, understandable and sufficiently practical.
The purpose of risk management is to support the achievement of the company's business objectives and further to create value for shareholders in the short and long term. Risk managementsystematically examines and anticipates risks and opportunities in a changing operating environment. Based on the examination, decisions are made on objectives. The emphasis is on proactive measures that reduce the probability and impact of risk.
Risk management is based on a systematic process, the implementation of which is integrated into business planning and operational processes. Risk management responsibilities are divided amongst different bodies. The Board of Directors is responsible for the company's risk management and approves the risk management policy, whilst the Audit Committee evaluates the company's risk management levels and practices as well as key risk areas and makes proposals to the Board in these respects. The CEO and the Corporate Leadership Team (CLT) are responsible for defining and implementing risk management principles and also for ensuring that risks are taken into account in the company's planning processes and that they are reported in a sufficient and appropriate manner. The owner of Metsä Group's Risk Management Process is responsible for maintaining and developing the risk management process and capabilities in cooperation with the business units. Metsä Board's Risk Committee coordinates risk assessments and compiles a summary of key risks twice a year, which the CEO presents to the Corporate Leadership Team review.
Business risks also involve opportunities that can be utilised within agreed limits. Conscious risk-taking decisions must be based on a sufficient assessment of risk-bearing capacity and profit/loss potential before the preliminary study and implementation phases of significant projects and investments.
Key elements of Metsä Board's risk management include the implementation of a comprehensive risk management process supporting the entire business, the protection of assets and ensuring business continuity, the company's safety and its continuous development, as well as crisis management and continuity and recovery plans. In accordance with the risk management policy and principles, adequate risk assessment is part of the preliminary study and implementation phases of financially or otherwise significant projects.
The tasks of Metsä Board’s risk management are to
- ensure that all identified risks affecting personnel, customers, products, property, information assets, corporate image, corporate responsibility and operational capacity are controlled according to applicable laws and on the basis of best available information and financial aspects
- ensure that the company’s objectives are met
- fulfil the expectations of stakeholders
- protect property and ensure disruption-free business continuity
- optimise the profit and loss possibility ratio
- ensure the management of the company’s overall risk exposure and minimise the overall risks.
The most significant risks and uncertainties known to the Company are described in the Report of the Board of Directors.