Risk Management
Operational risk management
The Group’s risk management supports the comprehensive corporate governance work relating to the control and management of operational risks. The Board of Directors and Group management are ultimately responsible for the risk management process. However, the process is implemented at all levels of the organization and the Group applies an all-round approach to risk, supported by policies, instructions, manuals and systems.
At the first Board meeting of the year, an account is given of significant known risks, projects in progress and insurance cover. In addition, the Board is continually updated about any changes that take place during the year. The risk situation is then a standing agenda item for discussion at all Group management meetings with Senior Vice Presidents and Business Area Presidents.
Since 2001 has Trelleborg arranged a specific Risk Management Forum where representatives from all four business areas meet five times a year to discuss policies, reviews and risk and safety matters and to solve specific issues related to risk and insurance. This forum is led by the General Counsel together with the Group’s Risk Manager. The Group’s Environment Manager is also a member of this forum.
Risk management has also been pursued at local/regional levels by “risk hubs” in Germany, France, Italy, Spain, Scandinavia, the UK and the US since 2004. These provide a direct presence in a larger geographic area and enhanced competence in a variety of legal systems and their particular risk issues. Each risk hub develops specialist expertise in one or two specific risk areas. This expertise is then disseminated throughout the Group.
As a net borrower and due to its substantial operations outside Sweden, the Trelleborg Group is exposed to various financial risks. Trelleborg’s Financial Policy sets out guidelines for managing these risks within the Group. This Policy states the purpose and organization of financial activities, the division of responsibilities and guidelines for managing different risks. The Board’s Finance Committee evaluates the Financial Policy and proposes changes annually, or more frequently if necessary, after which the Policy is adopted by the Board.
The full Risk Management section from Annual Report 2007 (pdf)