Process, system, and management of key risks
The purpose of risk management is to advance the fulfilment of SATO’s strategic and business objectives. We assess opportunities and threats that arise in our operations in relation to our set objectives. We also ensure the continuity of our operations, produce information to support business decisions and maintain the organisation’s understanding of the opportunities and uncertainties of our operating environment.
SATO’s risk management is based on the risk assessment embodied in the strategic and annual planning process, and the assessment also covers the risks of the financial reporting process. The risk assessment includes measures for
minimising risks. Business risks consist of strategic and operative risks as well as financing and market risks. In order to ensure that strategic and operational risks are handled comprehensively, key SATO employees take part in the risk identification process.
We have laid down responsibilities for evaluating and monitoring the realisation of recognised risks. When required, we initiate risk management measures with the goal of preventing risks from being realised or to enhance the monitoring of a certain area. Management can also be strengthened by preparing operating models for various risk situations.
We continuously monitor changes in situations and the sufficiency of management on both the Group level and by the persons responsible for each risk area.
Risk management system
Risk evaluations and risk management: Key guidelines
• Decision-making model and authorisations
• Financing policy
• Procurement management model (supplier networking, selection of suppliers, supplier criteria, selection of partners)
• Insurance policy management system, appraisal and allocation of responsibility
• Internal control system
Process Management Model
• Ownership of key processes, monitoring and development model, and indicators
• Financial and operational reporting
• Balance between preventive and