Sandvik logo

Key risks 2024

Key risk
What does this mean?
Examples of what do we do (mitigation)
Shift to growth
Key risk
Geopolitical development
What does this mean?
Regionalization/nationalization

Increasing trade tariffs

Extreme weather events/climate change
Examples of what do we do (mitigation)
Tariff mitigation plans from all business areas.

Property loss prevention and environmental resilience review.
Key risk
Geographical agility
What does this mean?
Lower growth projections in key markets

Heavy European footprint
Examples of what do we do (mitigation)
Footprint optimization.

Regional growth strategy and segments.
Key risk
Acquisition value creation
What does this mean?
Business case delivery

Ensure efficient administrative integration
Examples of what do we do (mitigation)
Capital allocation.
Key risk
Business transformation
What does this mean?
Electrification of the mine

Closed loop manufacturing

Execution of digital shift and data driven productivity
Examples of what do we do (mitigation)
Business area M&A strategies.

Six moves/Digital strategy.
Key risk
Inventory build-up/cash conversion
What does this mean?
Access to cash

M&A agenda realization
Examples of what do we do (mitigation)
Inventory management projects in all business areas and divisions.

Incentive fine-tuning
Digital shift
Key risk
Digital disruption
What does this mean?
Cyber security

Information security

Disruption by digital players

Embracing AI
Examples of what do we do (mitigation)
Cyber security improvement program.

Implementation of NIS2 EU directive.

Data management projects.

Establishing Sandvik Manufacturing Solutions.

Execution of Digital Mining and digital offering.

AI adoption plans for all parts of the business.
Sustainability shift
Key risk
Compliance/regulatory requirements
What does this mean?
Increased regulatory requirements

Third party risks

Stricter financing requirements

Trade sanctions
Examples of what do we do (mitigation)
Intermediary management program.

Update digital tools for third parties.

Compliance digital improvement project.
Agile through cycle
Key risk
Managing downturn
What does this mean?
Meeting EBITA range

Contingency fatigue
Examples of what do we do (mitigation)
Restructuring projects.

Contingency plans, four phases, performance management.

Pricing initiatives and follow-up.

Your Voice actions on employee engagement.
Customer’s 1st choice
Key risk
Understand changing customer needs/requirements
What does this mean?
Customer centricity

Adapting to market transformation

Customer requirements on digital compliance
Examples of what do we do (mitigation)
Cyber security improvement program/NIS2 implementation.
Key risk
Change management
What does this mean?
Operating structure

Transformative leadership capabilities
Examples of what do we do (mitigation)
Leadership education for change.
Employer of Choice
Key risk
Key talent attraction/retention
What does this mean?
New talent (digital, electrification, sustainability)

Re-skill existing workforce
Examples of what do we do (mitigation)
Business areas, divisions and Group functions have competency plans in place.

Group common employer branding initiatives targeting new competence areas.