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: 1. Macro and market related risks, 2. Operational risks, 3. Climate and society risks, 4. Compliance risks and 5. Financial risks.
Board of Directors, Audit Committee
The Board of Directors monitors risks and mitigation activities annually and the Audit Committee biannually through the consolidated ERM report.
The Executive Board analyzes accuracy of reported risks and mitigation activities and ensures alignment to strategic and operational agenda.
Enterprise Risk Management Committee
The ERM Committee reviews, analyzes and challenges compiled risks and mitigation activities three times per year. The committee consists of the Executive Vice President Group Finance, Executive Vice President Legal & Compliance, Senior Vice President Group Treasury & Corporate Finance and Senior Vice President Group Reporting, Tax and Control.
Enterprise Risk Management Function
Each Business Area and Group Truck Division reports its largest risks and mitigation activities three times per year to the ERM function, which reviews and compiles reported risks into the Group ERM report.
Business Review Meeting
Business review meetings in each Business Area and Group Truck Division identifies, mitigates, monitors and analyzes its largest risks. This forms the basis for the ERM reporting.
Executive Management Teams
Executive Management Teams in each Business Area and Group Truck Division are fully responsible for risk and mitigation management in their respective area. Risks are identified, mitigation activities are established, and monitoring and reporting of progress is part of daily operations.