Updated February 16, 2017
The overall objective of risk management is to identify, evaluate, and manage risks that may threaten the achievement of Fiskars’ business goals. The aim is to secure personnel and assets, ensure the uninterrupted delivery of products to customers, and protect the reputation, brands, and shareholder value from developments or damage that may undermine Fiskars’ profitability or adversely affect its assets.
In relation to financial reporting, the task of risk management is to identify potential threats affecting the financial reporting process that, if they were to become reality, could lead to a situation in which management lacked up-to-date, sufficient, and essentially accurate information needed to manage the company and in which financial reports published by Fiskars did not provide an essentially accurate picture of the financial position.
The principles observed in risk manage ment are included in the risk management policy approved by the Board of Directors. The Board’s Audit Committee oversees the efficiency of risk management systems. Responsibility for identifying, evaluating, and also, to a large extent, managing Fiskars risks, is delegated to business units and support functions. The Group Treasury is responsible for developing and maintaining the methods, tools, and reporting associated with risk management. In addition, it carries out regular risk assessments together with business units and support functions and assists in the preparation of action plans based on the results of these assessments.
Fiskars has taken out comprehensive insurances to provide cover for the Group’s main assets, business interruptions, transportation, and liabilities. Insurance matters, with the exception of certain types of local insurance, are managed centrally by the Group Treasury. The Group Treasury manages financial risks in accordance with principles
approved by the Board of Directors.
Fiskars manages the risks associated with its financial reporting process in a number of ways including the following:
- Maintaining and resourcing an appropriate financial management organization
- Limiting the rights and responsibilities of individual members of staff appropriately
- Managing the user rights that give access to the Group’s reporting system centrally
- Issuing guidelines on accounting and reporting
- Maintaining a common Group chart of accounts
- Making effective use of IT tools
- Providing ongoing training for personnel
- Validating the accuracy of information that is reported as part of the reporting process
Fiskars continues to unify its financial processes and implementation of common IT tools. With regards to risk management, the objectives are to ensure that effective internal controls are in place and to improve the transparency and quality of information used in management decision-making.
Risk management framework