The objective of Ahlstrom’s risk management is to support the achievement of the company’s strategic and operational goals by protecting the Company against loss, uncertainty and lost opportunity. The framework and responsibilities related to risk management are defined in the Corporate Risk Management Policy.
The risk management process facilitates identifying, analyzing, evaluating and reacting on events that may threaten the achievement of the Company’s objectives. The risks that may affect the Company’s operations are categorized as strategic business risks, operational risks and financial risks.
In Ahlstrom, the main principle is to manage risks at their source, i.e. within the business unit or function where risks may occur. Risk identification and assessment is carried out at corporate, business area and unit level.
The Corporate Risk Management function facilitates an annual risk review program with the business areas and the EMT and corporate functions as required. Identified key risks are followed up and taken into consideration in the Company’s strategic and annual business planning processes.
To realize economies of scale and ensure appropriate group level control, certain risk management activities – such as the establishment of group-wide insurance programs and management of the group’s financial risks – are centralized. In addition, the corporate and business areas’ HSEA (health, safety, environment and asset protection) organization, as well as the IT function, provide guidelines and review procedures for all business units and functions. Significant investments are reviewed by the Investment Council before submission for approval by the President & CEO and/or the Board. Major contracts are reviewed by the Corporate Legal department.
The risk management process in Ahlstrom is introduced in the Corporate Governance Statement on the company’s website. The major business risks in 2015 are described in the Risks and risk management section in the report of operations, which is included in the Financial statements 2015. Short-term risks are also described in the report of operations. Financing risks and hedging principles are presented in the notes to the consolidated financial statements.