Risks and Risk Management

SRV engages in systematic risk management in order to protect itself against factors that might adversely affect its business operations and to promote recognition of new opportunities. The company improves the profitability and stability of its operations by identifying strategic and operational risks and reacting to them in a timely manner. Risk management is part of SRV’s management system. It supports the company’s values, vision, strategy and the achievement of its earnings objectives.

The objective of risk management is to ensure that SRV’s controllable risks do not jeopardise operations. To this end, SRV has a systematic and comprehensive approach to identifying and assessing risks as well as to carrying out the necessary risk management measures and reporting on operations.

Overall responsibility for risk management rests with the company’s Board of Directors and the President & CEO. The Audit Committee goes quarterly through a report on the operational risks and how to prepare for them. The Board of Directors approves the risk management strategy and policy, and assesses the framework for risk management covering the entire company. Line management is in charge of carrying out day-to-day risk management as well as for its steering and supervision. The Group’s risk management function supports the application of risk management principles and develops Group-wide operating practices.

Short term risks and uncertainties  (January – February 2023 Interim Report, 27 April 2023)

SRV’s most significant short-term risks and uncertainties are related to the upward trend in interest rates that continued after the end of 2022 and thus to the demand of investor and consumer customers and the availability of their financing. This may have an impact on the delay or cancellation of planned projects.

The company’s risks and risk management are described in the 2022 Notes to the Financial Statements and Annual Review, which were published on 1 March 2023 on the company’s website: www.srv.fi/en/investors/releases-and-publications/annual-reviews-financial-statements/.

SRV has also published a Corporate Governance Statement, which includes a description of the main features of the company’s risk management systems, as a separate report from the Annual Review. This statement was published on 1 March 2023 and is available on the company’s website at: www.srv.fi/en/investors/cg/.