The primary objective of Norrhydro’s risk management process is to support the implementation of the company strategy, ensure the continuity of business activities, and help achieve Norrhydro’s business objectives by proactively anticipating and preventing business-related risks. Norrhydro’s business risk management emphasises the role of the corporate culture and it is an integral part of Norrhydro’s operations, planning and decision-making. Norrhydro’s risk management policy is based on, where applicable, the risk management principles laid out by the COSO Enterprise Risk Management framework.
Norrhydro’s risk management is based on a model of three lines of defence:
1. Business operations and other units manage risks as part of daily business operations and decision-making.
2. The Chief Financial Officer (CFO) leads, supports and develops risk management processes together with the CEO and the Executive Management Team.
3. The Board of Directors reviews the risk management results and makes conclusions on the effectiveness of the risk management process.
Board of Directors
The Board of Directors monitors Norrhydro’s risk management process and ensures that it is sufficient. The Board of Directors determines the company’s risk appetite and tolerance in accordance with the prevailing conditions. The Board of Directors also approves the company’s risk management policy.
The CEO is responsible for the implementation of the risk management principles determined by the Board of Directors. The Executive Management Team and CFO help the CEO with this task.
Executive Management Team
The company’s Executive Management Team ensures that the set targets are achieved and manages target-related risks. The Management Team is also responsible for the company’s risk management activities, the effectiveness of the risk management process and the adequacy of risk management resources.
Chief Financial Officer (CFO)
The Chief Financial Officer is responsible for operations related to business risk management, providing business risk management advice, and monitoring and coordinating the implementation of the risk management process in practice. The CFO supports business operations and other support functions in risk management. The CFO reports key risks to the Executive Management Team and the CEO, who, in turn, reports to the Board of Directors.
Support functions identify, analyse and manage risks and report them to the CFO as agreed.
All employees are responsible for risk management in their own work, and they are obliged to notify their supervisor of any critical risks they observe.
Norrhydro Group Oyj
Headquarter & production
FI-96100 Rovaniemi, Finland
Cargo-in: +358 40 618 4054
FI-33840 Tampere, Finland
FI-70210 Kuopio, Finland