Risk and risk management
Like all business operations, Thule Group operations are associated with different types of risk. Continuously identifying and evaluating risks is a natural and integrated part of the operations, thus enabling us to control, limit and manage prioritized risks in a proactive manner.
The Thule Group ability to analyze and prevent risk in turn reduces the risk of unforeseen events having a negative impact on operations. The goal of risk management is not necessarily to eliminate risk, but to safeguard our business goals by way of a balanced risk portfolio. Mapping, planning and management of identifiable risks all support management when taking strategic decisions. The risk assessment also aims to increase risk awareness across the entire organization, for both operational decisionmakers and Board members.
Organization
The Board of Directors of Thule Group bears ultimate responsibility for the company’s risk management. Risks relating to business development and long-term strategic planning as well as the Group’s work on sustainability and environmental initiatives and their related risks are managed and prepared by way of a prioritization proposal produced by Thule Group management and prioritized ultimately by the Board.
Group management reports ongoing risk issues such as the Group’s financial status and compliance with the Group’s finance policy to the Board. Thule Group central finance department is responsible for the prioritization and management of financial risks, including exposure to exchange rate fluctuations. Thule Group has a central function responsible for ensuring that the Group is appropriately protected by insurance for insurable risks, in line with the prioritization proposed by Group management and resolved by the Board. 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 Group risk management process. The table in the Annual Report 2023, briefly describes the most significant risks, along with their counteracting factors and management, to limit their potential impact on operations. A description of how Group management evaluates and manages the primary risks in operations relate to a time frame of 1–3 years.
A more detailed compilation of financial risks can be found in the Corporate Governance Report. Work environment risks are described in more detail in the chapter on Sustainability efforts within manufacturing in the Annual Report. Thule Group has categorized identified risks according to industry and market-related risks, operational-related risks, sustainability-related risks and financial risks.