Risk and risk management

Like all business operations, Thule Group’s operations are associated with different types of risk. Continuously identifying and evaluating risks is a natural and integrated part of the work approach, thus enabling us to control, limit and manage prioritized risks in a proactive manner

The Group’s ability to identify, map and prevent risk reduces the likelihood of adverse events having a negative impact on the company’s operations. The goal of risk management is not necessarily to eliminate risk, but rather to safeguard meeting our business goals by way of a balanced risk portfolio.

Identifying, mapping, planning and managing identifiable risks all support management when taking strategic decisions. The risk assessment also aims to increase risk awareness across the entire organization, both for operational decision-makers and for the Board.

Organization

The Board of Directors of Thule bears ultimate responsibility for the company’s risk management. Risks relating to business development, long-term strategic planning, sustainability initiatives are managed and prepared by way of a prioritization proposal produced by Group management, and prioritized ultimately by the Board. Prioritization is also allocated according to the assessed likelihood and level of impact should the risk materialize.

Group management reports ongoing risk issues such as the Group’s financial status and compliance with the Group’s finance policy to the Board. The Group’s central finance department is responsible for the prioritization and management of financial risks

Thule Group has a central function responsible for ensuring that the Group is appropriately protected by insurance for insurable risks. The Group’s Code of Conduct and a number of more specific policies form the basis of ongoing operational risk management undertaken at every level of the organization.

Risk overview

A number of risk areas have been identified in Thule’s risk management process. The tables in Annual Report 2024 briefly describe the most significant risks, along with their counteracting factors and management, to limit their potential impact on operations. Each of these risks is also assessed according to the likelihood and level of impact should the risk materialize. These assessments are presented using a graded scale for each of the risks.

The Group management evaluates and manages the primary risks in operations relate to a time frame of 1–3 years. 

Thule has categorized identified risks as Product design and development, Supply chain and sourcing, External factors and market risks, Production and operations, Financial risks, Human resources and workplace conditions, Policy risks and Corporate governance.