SRV engages in risk management, both to protect itself against factors that might hinder its business operations and to recognise new opportunities. The Company improves the profitability and stability of its operations by identifying and reacting to strategic and operational risks in time. Risk management supports the Company's values and strategy, and the attainment of its earnings objectives.
To this end, SRV ensures that it has a systematic and comprehensive approach for identifying and assessing risks, and also for reporting on operations and implementing any required risk management measures. Risk management is part of the Company’s management system. SRV’s risk management principles and framework are described in the Company’s risk management policy. This policy is supplemented by more detailed guidelines and procedures for different areas.
SRV’s Group-level risk management process, which is linked to the strategy process, comprises the identification of material risks related to the Company’s operations and an assessment of their significance, the planning of measures to eliminate risks or mitigate their impacts, and the appointment of personnel to take responsibility for risk management. Continuous risk management is planned and implemented on a function- and site-specific basis for SRV’s various functions, development projects, construction projects and investments.
Any key risk management measures that must be complied with during construction projects are included in the process diagrams and other aids contained in SRV’s operating system. The Company also uses certified ISO-standard systems for quality assurance, environmental management, occupational healthcare and safety.
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 Report. The statement was published on 1 March 2023.
Risks and uncertainties
SRV classifies risks as strategic, operational, financial and other risks. The most significant risks that may be materially reflected in SRV’s business, financial result and non-financial performance are presented in the Report of the Board of Directors as part of the Annual Report. Near-term risks and uncertainties are described quarterly in the Company’s interim reports. Financial risks and their management are described in the Notes to the Financial Statements as part of the Annual Report.