Risk Management

Kemira relies on Enterprise Risk Management to identify, analyze, evaluate and treat risks systematically and proactively. Kemira’s objective is to reach the desired aggregate risk level and ensure the continuity of operations.

Key Risk Management Principles

The key principles of Kemira’s risk management are defined in the Kemira Group Risk Management Policy. In the policy, the Company defines risks as potential events or circumstances, which, if they materialize, may affect Kemira’s ability to meet its strategic and operational goals in a sustainable and ethical way. In accordance with Kemira’s risk management process the company aims at systematic and proactive identification, analysis, evaluation and treatment of various risk categories, such as strategic, operational, hazard and financial risks. Kemira’s objective is to determine and maintain the desired aggregate risk level in relation to the Group’s risk tolerance, while ensuring business continuity.

Kemira’s risk management is based on the Finnish Corporate Governance Code and on the Kemira Code of Conduct. In addition, Kemira has Group guidelines and policies in place that specify management objectives, responsibilities and risk limits in greater detail.

Kemira’s Board of Directors defines the main principles of Kemira’s risk management and approves the Group’s risk management policy, and the Audit Committee assists the Board in risk management supervision. The business segments, functions and regional areas are responsible for the risks involved in their activities and for the related risk management. The Group’s Risk Management function is in charge of supporting, developing and coordinating risk management and risk management networks within the Group.

Risk Management Implementation

In Kemira, each segment, function and region performs its overall risk management according to the risk management framework and process described in Kemira’s risk management policy and in conformity with the jointly agreed risk self-assessment methodology. The results of the risk management process are reported regularly both internally and as part of Kemira’s external reporting.

Some risk treatment measures are performed centrally in order to generate cost benefits and ensure a sufficient level of protection. These include insurance cover for certain risks, such as general third party and product liability, cargo, property damage and business interruption insurance for major production sites, as well as the hedging of treasury risks.