LKAB is exposed to various risks, which is why risk management is an important part of our operation. LKAB has established guidelines and methods for identifying, evaluating and possibly managing risks in accordance with LKAB's financial and sustainability goals.
The Chief Risk Officer (CRO) maps, analyses and submits proposals for how risks can be reduced, avoided or accepted alongside divisions, staff units and the Group management. LKAB reports risks in three areas: strategic, operational and financial risks.
LKAB is exposed to a number of different risks that are difficult to influence. In order to manage strategic risks, LKAB is involved for example in monitoring the outside world and performing scenario analyses, as well as working with long-term customer relations and flexibility in the customer and product portfolio.
Through its operations, LKAB is exposed to a number of operational risks when it comes to production facilities, environmental impact and personnel.
The financial risks can relate e.g. to the company's cash flow, credit exposure, payment flows, customers, subcontractors and business partners, as well as currency and interest risks.
LKAB's management of financial risks is regulated by a financial policy established by the Board. The financial policy forms a framework of guidelines and rules in the form of risk mandates and limits for financial operations. The central finance function, the Treasury Centre, handles the Group's combined financial risks and is also the Group's internal bank. The Board's finance committee is responsible for continually following up the management of financial risks, goals for risk exposure, administration, credit limits, other limits and reporting procedures, as well as for checking that this is taking place in accordance with the financial policy.
For more information about LKAB's strategic, operational and financial risks and how we manage them, read the risk and risk management section in our annual and sustainability report.