Risk management

Pohjolan Voima’s risk management policy determines the Group’s risk management practices and the operating model’s main principles and responsibilities. The aim of risk management is to ensure the realisation of the strategy and the achievement of the business objectives, as well as to safeguard continuity and disturbance-free operations. The risk management process is further specified by the underlying insurance policy.

Risk management organisation and responsibilities

Pohjolan Voima’s Board of Directors approves the Group’s risk management policy. The Board ensures that risk management is properly implemented. With the Corporate Executive Team, the managing director is responsible for the effectiveness of risk management at the Group level. The Group’s overall risk status is reported to the Group’s Board of Directors as part of the strategy process.

The subsidiaries and Group functions are responsible for their own risk management. The key risks of the Group companies are annually updated and discussed by the Boards of the respective companies. The managing director of the subsidiary and the person responsible for group operations are obligated to ensure that risks are properly managed.  

The areas of responsibility continuously assess their risk status and report it as part of Pohjolan Voima’s annual schedule, and whenever material changes occur. Project risk management and the related principles are described in separate guidelines. As a general rule, the project manager is obligated to ensure that risks are properly managed. 

Pohjolan Voima’s financial unit is responsible for the maintenance of the risk management system and the development of the risk management procedures and tools. It also supports the Group management, the subsidiaries and the support functions in the implementation of risk management. The overall risk review for the Pohjolan Voima Group is updated twice a year and then reported to the Audit and Financing Committee and the Board. The Group’s most significant risks are described in the report of the Board of Directors.