Each of the Volvo Group’s Business Areas and Truck Divisions Monitors and manages risks in its operations. In addition, the Volvo Group utilizes a centralized Enterprise Risk Management (ERM) reporting process, which is a systematic and structured framework for reporting and reviewing risk assessments and mitigations as well as for following up on identified risks.
The ERM process classifies Volvo Group risks into five categories:
The Board of Directors monitors risks and mitigation activities annually and the Audit Committee regularly goes through the consolidated ERM report
The Group Executive Board analyzes accuracy of reported risks and mitigation activities as well as ensures alignment to strategic and operational agendas.
The ERM Committee reviews, analyzes and challenges compiled risks and mitigation activities, ensuring a first alignment with the Group’s operational agenda. The committee consists of the Executive Vice President Group Finance, Executive Vice President Legal & Compliance, Senior Vice President Group Treasury & Corporate Finance and the Senior Vice President Group Financial Reporting and Business Control, and Senior Vice President Risk Management and Internal Audit.
Each Business Area and Truck Division reports its largest risks and mitigation activities to the ERM function, which reviews and combines reported risks into the Group ERM report.
Business review meetings in each Business Area and Truck Division identify, analyze, mitigate and monitor its largest risks. This forms the basis for the ERM reporting
Executive Management Teams in each Business Area and Truck Division are fully responsible for risk and mitigation management in their respective areas. Risks are identified, mitigation activities are established, and monitoring and reporting of progress is part of daily operations.