RISK MANAGEMENT IN FINNAIR
Risk management in Finnair is a Group management responsibility. Risk management measures are directed primarily at risks that threaten the fulfilment of the Group's business objectives. Finnair's risk management activity is guided by business objectives set by shareholders, finance providers, customers, management, personnel and other important interest groups.
In order to exploit business opportunities the Finnair Group utilizes its risk-taking and risk-bearing capacity through considered and controlled exposure to risk. No risks are taken in flight safety matters. Risk management and safety thinking are an integral part of Finnair's operating practices and culture as well as its management and supervision procedures.
Finnair strives to anticipate the realization of risks. The Group's risk management activity includes risk recognition and analysis. Based on this, a range of risk management measures are used, taking into account the optimization of costs arising from risk management. Administrative means are used to avoid and remove risks, to reduce the probability and impact of risks as well as to spread and transfer risks. Effective special situation management preparedness has been put in place in case certain risks should be realized.
The Board of Directors and the Chief Executive Officer are responsible for the Group's risk management strategy and principles as well as for the management of risks that threaten the fulfilment of strategic objectives. The Group's Chief Financial Officer is responsible for the management of financial risks and the SVP, Administration and Personnel Resources for the management of accident risks.
The management of flight safety risks is the responsibility of a separately appointed organization of responsible personnel approved by the authorities. The level of risk management as well as the development and practical application of risk management principles is directed by a risk management steering group and monitored by internal and external auditing.
In order to facilitate their management, Finnair's risks are classified into strategic, operational, financial and accident risks. Based on this risk classification, the Group constantly surveys and analyzes business risks, determines acceptable risk levels and formulates risk management measures for various risk categories. The Group's subsidiaries and business units have conducted analyses of the most significant risks to which their own business activities are exposed. This has been used to prepare a risk map for the Finnair Group. |