Managing risk is a natural part of doing business in the Group
The Board of Directors continuously evaluates that the Group’s risk exposure is consistent with the chosen risk profile and that appropriate awareness and management processes are present.
Risk management is part of the CFO function but reports directly to the Board of Directors. All managing directors of our subsidiaries and Group functions heads must ensure that a yearly risk review within their areas of responsibility is conducted; that risks are scored for severity and likelihood, and quantified in terms such as predicted financial impact. Appropriate mitigation actions for identified risks are proposed by the company or Group function and studiously evaluated to ensure effective risk management at Group level. These are integrated into the quarterly business reviews between the CEO/CFO and the responsible ROCKWOOL Group Senior Vice Presidents.
On Group level an Enterprise Risk Management committee is formed, consisting of members from both the business and Group functions. The committee is responsible for reviewing and updating the internal risk management framework and for implementing the related processes. Twice a year the committee meets to prepare the update of risks to the Group Management and the Board of Directors.