Objective of risk management
The goal of NYAB’s risk management policy is the systematic identification of risk factors, as well as their continuous monitoring and optimal management so that the Group achieves its strategic and financial objectives. The Company understands that controlled risk-taking can have a positive effect on the company’s development. The starting point of NYAB’s risk management policy is to manage the risk position as a whole, although the identification of individual risks and the means of management at a practical level may differ.
Definition of risk
NYAB defines risk as an internal or external uncertainty, the realisation of which either positively or negatively affects NYAB’s ability to achieve the financial and strategic objectives set for it.
Principles of risk management
NYAB Plc’s Board of Directors has the main responsibility for arranging appropriate and effective risk management in the Group. However, all NYAB companies, members of NYAB Plc’s organisational staff and service providers for outsourced operations are always obliged to contribute to the achievement of the goals set out below, to be aware of the importance of internal control and risk management from their own goals and to implement required risk management measures and reporting.
The principles are as follows:
- The Group and its companies do not knowingly take on such a level of risk in their operations that it could pose a material risk to the liquidity or solvency of the companies or the Group.
- Ongoing risk management shall ensure that significant risks that may impede the company’s business or the achievement of business objectives are identified, assessed and monitored as part of the day-to-day management of the business.
- Risk management shall cover all material internal and external business risks, regardless of their measurability or the company’s ability to influence their hedging.
- Risk management procedures shall be continuously maintained and developed to ensure that all new, material but previously unidentified risks are included in the risk management process.