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Risk and opportunities

The facility management industry is widely perceived as an industry with relatively low risks. To minimize those risks that do exist, Coor engages in structured risk management activities based on mapping, analysis and control.

Risks to the business

Coor is exposed to a number of strategic, operational, financial and legal risks. The risks that Coor has identified as being most material along with brief descriptions of how they are managed are presented in the table below.

Sustainability risks

From a sustainability perspective, the Nordic FM industry is perceived as an industry with a relatively low risk profile. In its risk analysis, the company has taken account of sustainability-related risks. Risks related to human rights and corruption have also been addressed but are currently not considered material enough to warrant inclusion in the detailed assessment of the Group’s

priority risk areas. With regard to environmental risks, it should also be noted that the Coor Group only has minor operations that are subject to environmental permit requirements.

A sophisticated risk process

The objective of Coor’s risk management activities is to secure the Group’s long-term earnings performance and target achievement. Ultimate responsibility for the company’s risk management rests with the Group’s Board of Directors and management. These activities are guided by a central Group risk policy and risk management process and are based on an annual risk assessment covering all areas of activity. The past year’s risk management activities are summarised and discussed by the executive management team and presented to the Board.

Risk assessment

Coor’s risk analysis consists of an annual survey in which the key risks are identified. The probability of the identified risks occurring and their consequences are also assessed. The analysis also includes an assessment of the effectiveness of existing controls and measures aimed at minimising and managing the risks. The results are summarised in a risk map for each operating unit, which are then aggregated to Group level.