Holcim Essay

1975 WordsMay 17, 20158 Pages
Risk management Group risk management Group Risk Management supports the Board of Directors, the Executive Committee and the management teams of the Group companies in their strategic decisions. Group Risk Management aims to systematically recognize major risks the company encounters. All types of risks from industry, operations, finance and legal, up to the external business environment are considered including compliance, sustainable development and reputational aspects. Risks are understood as the effect of uncertainty on business objectives which can be an opportunity or a threat. The risk horizon includes long-term strategic risks but also short- to medium-term business risks. Potential risks are identified and evaluated at an early stage and monitored. Countermeasures are proposed and implemented at the appropriate level so that risk management remains a key responsibility of the line management. Risk transfer through insurance solutions forms an integral part of Group Risk Management. The Group’s risk profile is established by top-down, bottom-up and functional risk assessments which are combined to a Group 360° risk analysis. Besides the Group companies, the Board of Directors, the Executive Committee and selected Corporate Function Heads are involved in the risk assessment during the Group’s management cycle. The Executive Committee reports regularly to the Board of Directors on important risk findings and provides updates on the measures taken. Financial risk management The Group’s activities expose it to a variety of financial risks, including the effect of changes in debt structure and equity market prices, foreign currency exchange rates and interest rates. The Group’s overall risk management focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group. The Group uses

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