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Risk and risk management

Uncertainty about future events is a natural part of all business activities. Future events can have a positive impact on operations through opportunities to create increased value, or a negative impact through risks that have an adverse effect on Cloetta’s business and results. New risks can arise as a result of events or decisions that are beyond Cloetta’s control, but they can also be an effect of incorrect risk management within Cloetta or among its suppliers or customers.

Organisation for risk management

Cloetta’s Board of Directors has a responsibility to the shareholders to oversee the company’s risk management. Risk assessment associated with business development and long-term strategic planning is prepared by the Group Management Team and decisions are made by the Board of Directors. The Group Management Team continually reports to the Board of Directors on risk areas such as the Group’s financial status and compliance with Group’s finance policy. Operational risk management that takes place at all levels of the organisation is regulated by Cloetta’s Code of Conduct and a number of other central policies.

Identification of risks

The identification of risks and proactive measures to limit them or prevent them from materialising and having a negative impact on operations are of fundamental importance for operations and are a central part of every manager’s responsibility at Cloetta. Cloetta works continuously to assess and evaluate the risks to which the Group is, and can be, exposed. All events that could affect confidence in Cloetta or lead to operating disturbances are vital to monitor and minimise. This takes place among other things through business intelligence and dialogue with various stakeholders.

Risk management

Effective handling of risks is an integral part of Cloetta’s management and control. Rapid distribution of relevant information is ensured via the company’s management structures and processes. If possible, risks are eliminated and undesired events are minimised through proactive measures. Alternatively, risks can be transferred for example through insurance or agreements. However, certain risks are not possible to eliminate or transfer. These are often an active part of business operations.

Risk overview

In Cloetta’s risk management process, a number of risk areas have been identified. A selection of these and a brief description of how each risk area is handled see the latest Annual and Sustainability Report.