Key risks 2023
Key risk
What does this mean?
Examples of what do we do (mitigation)
Shift to growth
Key risk
Geopolitical development
What does this mean?
Trends towards regionalization or nationalization and trade wars
Disruptive events (natural disasters, pandemic)
Disruptive events (natural disasters, pandemic)
Examples of what do we do (mitigation)
Reviewing regional strategies and footprint distribution and supply chain
Key risk
Securing key supply
What does this mean?
Potential resource constraints around supply of battery cells and minerals
Examples of what do we do (mitigation)
Different initiatives around sourcing and business continuity planning
Key risk
Acquisition value creation
What does this mean?
Business case delivery
Ensure efficient administrative integration
Ensure efficient administrative integration
Examples of what do we do (mitigation)
M&A Tracker/review process and score cards
Integration follow-up processes with business reviews
Integration follow-up processes with business reviews
Key risk
Business transformation
What does this mean?
Electrification of the mine
Closed loop manufacturing
Execution of the digital shift and data-driven productivity
Closed loop manufacturing
Execution of the digital shift and data-driven productivity
Examples of what do we do (mitigation)
Performance management and execution of the strategy for M&A, product development and the six moves for enabling the digital shift
Key risk
Inventory build-up/cash conversion
What does this mean?
Access to cash
M&A agenda realization
M&A agenda realization
Examples of what do we do (mitigation)
Inventory management projects in all business areas and divisions
Digital shift
Key risk
Digital disruption
What does this mean?
Cyber security
Information security
Disruption by digital players
Information security
Disruption by digital players
Examples of what do we do (mitigation)
Cyber security improvement program and the six steps Sandvik has identified to enable the digital shift
Sustainability shift
Key risk
Being compliant
What does this mean?
Ensuring an ethical culture
Increased regulatory complexity
Stricter financing requirements
Increased regulatory complexity
Stricter financing requirements
Examples of what do we do (mitigation)
Learning and workshop initiatives across the organization, digital journey and a new Third Party Management policy and process
Key risk
Changing regulatory requirements
What does this mean?
Trade sanctions
Product/safety requirements
Change to data-driven processes
Product/safety requirements
Change to data-driven processes
Examples of what do we do (mitigation)
CSRD preparation project
Compliance digital journey to increase agility
Compliance digital journey to increase agility
Agile through cycle
Key risk
Managing inflation
What does this mean?
Price management
Leverage procurement capabilities
Leverage procurement capabilities
Examples of what do we do (mitigation)
Ongoing price management efforts and price/volume growth tracking
Different sourcing initiatives to increase flexibility/agility
Different sourcing initiatives to increase flexibility/agility
Key risk
Managing downturn
What does this mean?
Meeting target EBITA range
Timely execution of contingency plans
Margin volatility
Timely execution of contingency plans
Margin volatility
Examples of what do we do (mitigation)
Contingency plans, strong performance management and agile decision process with decentralized approach for each part of the business
Customer’s 1st choice
Key risk
Understand changing customer needs
What does this mean?
Customer centricity
Timely adjustment to market transformation
Ensuring customer value
Timely adjustment to market transformation
Ensuring customer value
Examples of what do we do (mitigation)
Customer satisfaction measurement, with divisions, business units and sales areas taking necessary actions close to the customers
Employer of Choice
Key risk
Key talent attraction and retention
What does this mean?
New talent (digital, electrification, sustainability)
Re-skill existing workforce
Re-skill existing workforce
Examples of what do we do (mitigation)
Talent attraction and development projects in all parts of the business
Group common employer branding initiatives targeting new competence areas
Group common employer branding initiatives targeting new competence areas