Managing risks to ensure continuous value creation
Effective management of financial and non-financial risks is essential for Cramo’s ability to create value in the short and long term. Within our risk management framework, we identify and evaluate potential risks and their consequences, and define and implement actions needed to mitigate their impact.
Cramo has identified several potential risks that may prevent it from reaching its strategic targets. These include strategic and operative risks as well as risks related to financial markets, competition, compliance with laws and regulations, sustainability and the Group’s reputation. Once identified, risks and their potential financial and non-financial impacts are analysed and evaluated, and the actions necessary to mitigate the impacts are defined. The risks are managed through control activities which are set throughout the organisation, at all levels and in all functions.
The business structure – two stand-alone business divisions – in itself entails a certain degree of risk mitigation. The Equipment Rental and Modular Space divisions are affected by the business cycle and general economic trend to varying degrees. In addition, the solutions serve different customer segments and end users, and the competitive situation for each division is different.
The most significant operative risks include IT-related risks and risks associated with strategic investments as well the efficiency of operations. Risk mitigation related to personnel, occupational health and safety, the environment and compliance with laws and regulations is also identified as crucial for our value creation ability.
As a response to the megatrends affecting our industry and to ensure responsible business operations and growth, sustainability is deeply embedded in our strategic and operational decision-making as well as in our risk mitigation.