Cramo has identified a number of 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.
Separation of the divisions will have an impact on the Group’s risk management
The current 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 separation of the Equipment Rental and Modular Space will have an impact on the Group’s risk management as the company structure and business will change significantly. Each of the stand-alone companies will need update their risk management policies and financial targets to reflect new group structures.
Ensuring value creation ability
The most significant operative risks include risks associated with strategic investments, the success of acquisitions and their integration, IT-related risks and 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 being crucial to 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.
Our risks and how we mitigate them