Risks and uncertainties
Altia has categorised its risks into four classes: strategic and business risks, operational and process-related risks, damage risks and financial risks. The Board of Directors and the Audit Committee assesses these central risks and the measures aiming to reduce the likelihood of their materialisation regularly.
Strategic and business risks relate to decision-making, resource allocation, management systems and the capacity to respond to changes in the operating environment (Strategy period: long-term, 3–5 years). Strategic risk assesment comprises also the regulatory framework and ethically sustainable business practices that apply to the company’s operations and industry. Corporate Responsibility risks related to business operations are described in the Non-Financial Statement published in connection with the Report by the Board of Directors.
Operational risks concern the implementation of strategy and dayto-day business operations. Such risks include deviations in processes, systems and conduct (Budget period: short-term, 1–2 years).
Hazard risks are errors, malfunctions and accidents occurring within Altia or its operating environment, resulting in damage or loss.
Financial risks pertain to changes in market prices, the short- and long-term adequacy of financial assets and the ability of counterparties to meet their financial obligations.
The following table contains a summary of key uncertainties with an either positive or negative effect on Altia’s operations:
Annual Report 2020: Report by the Board of Directors and Non-Financial Statement