Risk management

The objective of Sensofusion’s risk management is to identify, assess, address, record and report the material risks of the company’s business so that no single risk, if it were to materialize, would jeopardize the continuity of the company’s operations. The company takes conscious risks in its business when the targeted benefit is significant, but the maximum impact of a risk is limited to a level the company can withstand even in an adverse scenario. Terminal risks arising from the company’s own choices that could threaten the continuity of operations are avoided or strictly limited, while industry-typical risks that cannot be entirely eliminated are mitigated through reasonable measures and consciously accepted as part of the nature of the business. Risk management measures are used only when their benefit clearly exceeds the costs incurred.

The Board of Directors is responsible for organizing risk management, approving the risk management policy and annually assessing the key risks and the related risk mitigation measures. The CEO is responsible for the operational implementation of risk management and for maintaining the risk register, while day-to-day risk management is delegated to the relevant function. For example, the CFO is responsible for managing financial risks and the human resources function is responsible for managing personnel and occupational safety risks.

Risk management is an integral part of the company’s strategic and financial planning and is complemented by internal controls and, where necessary, outsourced internal auditing. The risk management policy is reviewed and updated as necessary, at least once a year.