The objective of Vaisala’s risk management is to identify and manage material risks related to strategy implementation and business operations. Vaisala has a Risk Management Policy, which has been approved by the Board of Directors and which covers the company’s strategic, operational, hazard, and financial risks. The policy aims to ensure the safety of the company’s personnel, operations, and products as well as the continuity and compliance of business operations.
The Board of Directors defines and approves risk management principles and policies and assesses the effectiveness of risk management. The Audit Committee reviews compliance with Risk Management Policy and processes. Vaisala’s Risk Management Steering Group comprises key internal stakeholders. The Steering Group is responsible for the operational oversight of the risk management process and for assuring that all significant risks are identified and reported and that risks are acted upon on all necessary organizational levels and in all geographical locations.
Risk management is integrated into key business processes and operations. This is accomplished by incorporating applicable risk identification, assessment, management, and risk reporting actions into the core processes. The most significant risks are reported to the Vaisala Management Group quarterly and to the Audit Committee annually.
We assess environmental risks as part of our environmental management system. The most significant environmental risks of our operations are related to potential emergency situations that can lead to local contamination. These risks are controlled, for example, as part of our emergency preparedness and our management process for hazardous substances.
Climate change impacts on risks have been assessed. Climate change increases the likelihood of certain risks (H4 Natural disaster, epidemic, civil unrest, terrorism and O1 Business continuity risks related to suppliers). On the other hand, exceptional weather conditions, increasingly disastrous storms, floods, and drought may also provide Vaisala with new business opportunities.Social and personnel matters
On an individual level, personnel risks relate to occupational health and occupational accidents. On corporate level, the risks are related to the company’s ability to retain and attract new talents. These risks are controlled through Vaisala’s occupational health and safety system and its continuous development. We also support the well-being of our employees, provide purposeful work, learning opportunities, and an equal work environment, as well as monitor employee satisfaction.Respecting human rights and preventing corruption and bribery
Risks related to human rights violations as well as corruption and bribery impact corporate reputation, brand, and the company’s ability to attract the best talent. Other potential consequences of these risks are judicial processes, penalties, contract cancellations, and exclusion from tenders.
These risks are managed through recurring and compulsory Code of Conduct trainings as well as audits. Our suppliers sign the Supplier Code of Conduct that sets the requirement level for their operation. Our other core partners, such as distributors and agents, commit to complying with our Code of Conduct, which compliance is assessed and monitored
Annual Report 2019