Risks and uncertainties
Uncertainties may be due to events in the world and can affect industries and markets and thus have an impact on the Volvo Group’s aspirations, vision and mission. These uncertainties may provide opportunities that the Volvo Group tries to capture in its strategy. In some cases, the Group can influence the likelihood that a risk-related event will occur. In other cases, when such events are beyond the Group’s control, the Group strives to minimize the impact.
The Volvo Group’s risk management
Volvo Group is working with enterprise risk management (ERM), a systematic and structured process to assess, report, analyze, mitigate and follow-up the risks that might impact the Group’s business. The objective of the ERM process is to improve business performance and optimize the cost of managing risks; i.e. creating, enhancing and protecting the Group’s enterprise value as well as enhancing and protecting the Group’s assets.
|Strategic risks may affect our ability to create value, the longterm development of the business and the possibility to reach our vision and aspirations.||Strategic risks are managed through strategies and strategic plans set by executive management and management teams throughout Volvo Group.|
|Short- and medium-term||OPERATIONAL RISKS
|Operational risks may affect our ability to enhance value and are important for the daily business while delivering our mission and living up to our aspirations.||Operational risks are managed through tactical and operational business decisions as well as in operations in all business throughout Volvo Group on all levels, by all employees.|
|Compliance risks may affect our ability to protect value through threats posed on our financial, organizational, or reputational standing. They are important to Volvo Group in order to follow our values.||Risks related to compliance rules and regulations are managed in tactical and operational business decisions and operations through all business in Volvo Group on all levels, by all employees. The guiding directive is the Volvo Group Code of Conduct.|
Enhance & protect value
|Financial risks may affect our ability to enhance and protect values from potential effects on the Group’s financial position. They are important to Volvo Group in order to fulfill our aspirations through our values.||Financial risks are managed in tactical and operational business decisions in all business throughout Volvo Group on all levels, by all employees. All following the financial framework, Volvo Group Financial Policies and Procedures.|