Valmet uses risk management to support the achievement of its strategic and business goals and to ensure the continuity of its operations also in changing circumstances. We believe that ability to take risks and manage them effectively is an essential element of business success and shareholder value creation.
We define risks as uncertainties, which, if materialized, can either positively or negatively impact our chances of achieving our goals. Hence risk is either an opportunity or a threat, or a combination of them. We assess the significance of a risk as a combination of probability and consequences of the occurrence.
Our comprehensive risk management approach emphasizes anticipation of risks and proactive actions and strives for a systematic, structured and timely approach. Risk management is embedded in all of our daily operations. Our risk management is established on the requirements of the ISO 31000 standard.
The goals of our risk management are to
• strengthen our ability to achieve our strategic targets and business objectives
• ensure the continuation of our operations
• support our strategic and operative decision making and planning
• increase our agility to take advantage of risks
• improve our organizational awareness, learning and resilience.
• help us to comply with legal and regulatory requirements and international norms
• improve our governance and controls
• minimize the negative effects of the risks on our operations
• help us to avoid hazard risks
• increase internal and external stakeholder confidence
Risks and business uncertainties
Valmet's operations are affected by various strategic, financial, operational and hazard risks. Valmet takes measures to exploit emerging opportunities and to limit the adverse effects of potential threats. The assessment of risks related to sustainable development holds an important role in risk management. If such threats materialized, they could have material adverse effects on Valmet’s business, financial situation and operating result, or on the value of shares and other securities.