Risk management serves to safeguard and improve business performance and the achievement of strategic goals by reducing the probability and effects of materialized risks and supporting the utilization of business opportunities.
We update our corporate responsibility risks twice a year as part of our comprehensive risk management process, and they are reported as a separate item in the Group’s risk report. Starting from the risk reporting conducted towards the end of the year, compliance risks have been separated from other risks related to corporate responsibility, and both are reported as separate items. The risk report is processed by our corporate responsibility steering group, Board of Directors, Audit Committee and Executive Board.
For us, corporate responsibility risks include, for example, outsourcing measures related to financial responsibility. In particular, they can have a negative effect on our reputation and, consequently, cause us to lose customers. Another key risk is the risk of potential information leaks, particularly those related to sensitive personal information.
Compliance risks include, for example, corruption as well as risks related supplier management and the failure of internal control. These are particularly important in Russia, Poland and the Baltic countries. In addition, investments in Russia may be considered to be unethical because of the social and legal development related to the business environment. A key environmental responsibility risk is accidents that cause extensive damage to the environment.
Our cooperation with PostNL, the national postal service of the Netherlands, launched in 2013, attracted negative attention. During the pilot phase, the coding service related to postal items with illegible address markings was purchased from a subsidiary of PostNL in the Philippines. Despite positive experiences, we decided not to continue the cooperation after the pilot project. By keeping work in Finland, we wanted to support Finnish employment and skills in the transformation of the postal industry. In the spring, delivery route changes, mail delivery disruptions and personnel reductions also attracted negative media publicity.