Enterprise Risk Management (ERM) is a continuous process of identifying, assessing, addressing and monitoring risks at all levels of the business. It enables quantification and comparability of financial as well as non-financial risks.
The risk function's proximity to the operations is ensured by risk managers who provide support to the operations through risk management and control.
The company culture, which encompasses Vattenfall’s vision, values and risk tolerance, among other things, is the starting point when the goals for the respective business units are set in the business planning process.
When setting these goals, events are identified that could hinder goal fulfilment. Identified events are assessed, and against the background of the business’s risk tolerance, a decision is then made on suitable risk measures: avoid, reduce, share or accept the risks. The business units’ most important risks and measures are followed up as part of the financial monitoring.
Information and communication are provided on a regular basis to the Executive Group Management and to the business units. The risk management organisation monitors, reviews and develops the process.
For further information on Vattenfall's strategic, operational and financial risks, please read the risks and risks management section in the Annual and sustainability report (PDF 6 MB).