The objective of Vaisala’s risk management is to identify and manage material risks related to strategy implementation and business operations. Vaisala’s Risk Management Policy, approved by the Board of Directors, 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 assesses the effectiveness of risk management. The Audit Committee reviews compliance with Risk Management Policy and processes. Vaisala’s Risk Management Steering Group is responsible for the operational oversight of risk management and assures that all significant risks are identified and reported and that risks are acted upon in the appropriate manner.
Risk management is integrated into key business processes and operations by incorporating 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.
Various risks may have an adverse effect on Vaisala’s business operations. The list in this chapter explains some of the risks with their potential impacts and how Vaisala manages those risks. Risk likelihoods and impacts are estimates, provided by a small group of subject area experts. No quantitative methods have been applied to assess either likelihoods or impacts.
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 as part of our emergency preparedness and our management process for hazardous substances. Climate change, on the other hand, has been assessed to increase the likelihood of certain risks (H4 and O1 in the table introduced here). Exceptional weather conditions, storms, floods, and drought – all related to climate change – may provide Vaisala also with 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 talent. These risks are controlled through continuous development of Vaisala’s occupational health and safety system, support for the well-being of our employees, monitoring employee satisfaction, as well as providing purposeful work, learning opportunities, and an equal work environment.Respecting human rights and preventing corruption and bribery
Risks related to human rights violations, corruption, and bribery impact corporate reputation, brand, and the company’s ability to attract the best talent. Other potential consequences 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. We choose our suppliers carefully and verify the sustainability of their practices. Our Supplier Code of Conduct sets the requirement level for their operation. Our other partners, such as distributors and agents, are committed to complying with our Code of Conduct. The compliance of all our partners is assessed and monitored.
Annual Report 2020