Risk identification and assessment play a vital role in the success of internal control. In order to control the efficiency and profitability of operations, the Group must be able to manage risks. Raisio’s internal control is to provide the management with assurance that the established risk management policy is followed.
Raisio’s risk management policy defines the targets, principles and responsibilities of risk management. Risk management is action aiming to identify and assess significant external and internal uncertainty factors that may threaten the strategy implementation and target achievement. Identified risks are eliminated, avoided, reduced or transferred to the extent possible. Raisio’s risks fall into strategic, operational, damage and financial risks. Special emphasis is placed on preventive action and its development. Risk management is part of the Group’s day-to-day operations and decision-making. Damages caused by products with inadequate safety and related liability risks are a key issue in the risk management of the Group producing foods and feeds.
Risk management function reporting to the CFO coordinates, develops and monitors risk management. External advisors are also used, when necessary, to develop risk management activities. Risk management function is responsible for the Group-wide insurance schemes. Their scope is assessed, for example, in conjunction with risk surveys carried out at company sites.
Each Division is responsible for conducting its own practical risk management in line with the risk management policy and the Group’s guidelines. Operative responsibility is held by the management of each Division and function. The Divisions survey and identify risks in connection with annual planning, among other things. The Group is prepared for operations in crises as well as for crisis communication.
Each Division and service function, including financing, reports on its main risks to the Management Team.