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.

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 handling within Cloetta or among its suppliers or customers.

Cloetta employeeOrganisation for risk management

Cloetta’s Board of Directors is responsible to the shareholders for handling the company’s risk management. Decisions regarding risks associated with business development and long-term strategic planning are prepared and discussed by the Group Management Team and decisions are made by the Group’s Board of Directors.

The Group Management Team continuously reports to the Board on risk issues such as the Group’s financial status and compliance with the Group’s finance policy. The operational risk management that is handled at all levels in the organisation is regulated by Cloetta’s code of conduct and a number of 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 are presented in the pages Industry and market-related risks, Operational risks and Financial risks.



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