Key risks 2022
Key risk
What does this mean?
Examples of what do we do (mitigation)
Geopolitical development
Trends towards regionalization or nationalization and trade wars
Reviewing regional strategies and footprint distribution and supply chain
Securing key supply
Potential resource constraints around supply of batteries, green electricity and mineral supply
Different initiatives around sourcing and business continuity planning
Acquisition value creation
Business case delivery
Ensure efficient administrative integration
M&A Tracker/review process and score cards
Integration follow-up processes with business reviews
Technology must-wins
Electrification of the mine
Closed loop manufacturing
Execution of the digital shift and data driven productivity
Careful performance management and execution of the strategy for M&A, product development and the 6 moves for enabling the digital shift
Digital disruption
Efficient systems upgrades
Cyber security
Information security
Disruption by digital players
Careful project management and lessons learned for implementation of new systems support, cyber security improvement program and the six steps Sandvik has identified to enable the digital shift
Being compliant
Ensuring an ethical culture
Increased regulatory complexity (e.g. Russia)
Stricter financing requirements
Learning and workshop initiatives across the organization, digital journey and with a new Third Party Management policy and process
Changing regulatory requirements
Sustainability reporting requirements
Trade sanctions
Product/safety requirements
Change to data driven processes
CSRD preparation project, compliance digital journey to increase agility
Managing inflation
Price management
Leverage procurement capabilities
Strong focus on price management and tracking price/volume growth
Different sourcing initiatives to increase flexibility/agility
Managing downturn
Meeting target EBITA range
Timely execution of contingency plans
Contingency plans, strong performance management and agile decision process with decentralized approach for each part of the business
Business interruption
Energy supply
Supply chain/logistics
Disruptive events (fires, natural disasters, pandemic)
Energy supply mapping and mitigating activities, carefully managed and active management of logistics/supply and business interruption planning
Understand changing customer needs
Timely adjustment to market transformation
Ensuring customer value
Customer satisfaction measurement with divisions, business units and sales areas taking necessary actions
Key talent attraction and retention
New talent (digital, sustainability)
Safeguard core talent supply (engineering, battery)
Re-skill existing workforce
Talent attraction and development projects in all parts of the business.