Sandvik risk universe
Our risk universe has been developed through analysis and stakeholder dialogue of material risks for our industry, our different businesses, critical laws and regulations and critical operational, commercial, sustainability and financial requirements. It is a comprehensive library of risks which management teams apply to better understand, evaluate and aggregate risk within the business.
The risk categories highlighted below refer to the Sandvik Group’s identified key risks assessed during 2019.
Strategic risks |
|
|---|---|
S1. |
Industry shifts and market developments |
S2. |
Macroeconomic developments |
S3. |
Technological change/shifts |
S4. |
Regulatory change |
S5. |
Emerging and complex market developments |
S6. |
Sustainability expectations or requirements |
S7. |
Geopolitical developments |
S8. |
Portfolio management/M&A strategy |
Financial risks |
|
|---|---|
F1. |
Liquidity and refinancing risk |
F2. |
Currency risk |
F3. |
Taxation risk |
F4. |
Credit and counterparty risk |
F5. |
Pension commitments |
F6. |
Financial regulatory reporting risk |
F7. |
Commodity price risk |
F8. |
Interest rate risk |
F9. |
Fraudulent activities |
F10. |
Forecasting and planning |
F11. |
Management estimates/assumption risk |
F12. |
Accounting information risk |
Business risks |
|
|---|---|
B1. |
Noncompliance with laws and regulations |
B2. |
Health and safety |
B3. |
Increased competition |
B4. |
Product development and product support |
B5. |
Intellectual property management |
B6. |
Talent attraction and employee retention |
B7. |
IT failures |
B8. |
Insufficient IT security |
B9. |
IT capacity or capabilities |
B10. |
Information and data protection |
B11. |
Data accuracy |
B12. |
Cost flexibility and control |
B13. |
Change management/demand/readiness |
B14. |
Sales and distribution channels |
B15. |
Business interruptions |
B16. |
Product liability requirements |
B17. |
Environmental demands/climate change effects |
B18. |
Aftermarket developments and management |
B19. |
Customer retention |
B20. |
Pricing models and management |
B21. |
Bottleneck processes/inefficient ways of working |
B22. |
Governance and internal controls |
B23. |
Sandvik values and ethics compliance developments |
B24. |
Employee competence development and leadership development |
B25. |
Contract management |
B26. |
Technology development and innovation demand – internal operations |
B27. |
Third-party liabilities, litigation and dispute resolution |
B28. |
Contractor/short-term staff management |
B29. |
Partners/agents /third-party management |
B30. |
Measurement and operational reporting |
B31. |
Insurable risk |
B32. |
Security situation |
B33. |
Project-related risk |
B34. |
Communications (internal and external) |
B35. |
Joint ventures and other partnership risks |
B36. |
M&A transaction or integration |
B37. |
Supplier and sourcing management |