Risk management

Enterprise risk management contributes to the achievement of strategic objectives

At Valmet, enterprise risk management contributes to the achievement of our strategic and operational objectives by providing a structured approach to identifying, assessing, managing, monitoring and reporting risks. Effective risk management supports informed decision-making, helps ensure business continuity and strengthens our ability to respond to changes in the operating environment.

Valmet's enterprise risk management framework is based on the principles of the ISO 31000 standard and provides a consistent approach to risk management across the company. The framework facilitates the identification of significant and emerging risks and promotes transparency, accountability and effective risk governance.

Key risks and uncertainties

Valmet's most significant risks and uncertainties are described in the company's Annual Report and are grouped into four main categories: strategic risks, financial risks, compliance and regulatory risks, and operational risks.

The assessment of risks related to sustainability is an important part of Valmet's risk management process. Further information on sustainability-related risks is available in Valmet's Sustainability Statement.

Valmet's interim reports highlight, where relevant, significant short-term risks and uncertainties that have emerged or changed during the reporting period.

Reports are available on Valmet’s Financial reports and presentations web page.

Risk management framework and governance

Valmet's risk management is an ongoing process covering the identification, assessment, management, monitoring and reporting of risks. Risk management supports strategic planning and decision-making.

Business areas and support functions are responsible for risks within their respective areas. Corporate risk management coordinates the overall process and reporting. The Executive Leadership Team reviews significant risks, while the Audit Committee and Board of Directors oversee the company's most significant risks and the effectiveness of risk management.