Managing financial and non-financial business risks is a continuous and iterative process. At HUBER+SUHNER, we assess actual and identify potential risks, their likelihood and impact on operations. Taking all types of risks into account has become crucial, including non-financial risks associated with business activities or our business relationships, products, and services. Nowadays, risks related to e.g. climate change, have to be considered as they could entail significant financial implications.
The eight top risks are the following (in alphabetical order): cybercrime, disaster, energy supply shortage and interruptions, exposure to currency fluctuation, exposure to geopolitical conflicts, non-compliance with internal and external standards, serial defects, worldwide pandemic.
Risks are classified and mapped according to their significance with regards to the financial impact they could possibly have on the company, and according to their probability of occurrence.
For each identified risk topic, a “sponsor” is assigned from the extended Executive Group Management or other members of senior management. Each sponsor is analysing the risk in her/his responsibility by:
Each year, the risks are being reviewed for their topicality. Based on the latest assessment the classification is amended if need be. Risks no longer relevant as such are removed from the risk map, whereas risks that have newly emerged are being assessed and, if material, added to the risk map. The designated sponsor is in charge of identifying risk drivers, drawing conclusions and proposing mitigating actions for the respective risk.
The risk report including the defined measures is thereafter submitted to the Board of Directors for review and approval, and made available to the extended EGM including the General Legal Counsel, Area Compliance Officers and the Global Process Owner “Order Fulfilment” for further implementation of measures.