Managing risks is a very high priority within FLSmidth

Risk management framework and process

Group Executive Management leads our risk management programme, with oversight from the Audit Committee and ultimately the Board of Directors having the overall responsibility for deciding the risk appetite and monitoring the risk exposure.

Through a bottom-up approach, risks are assessed by the Business Lines and Shared Functions during workshops facilitated by Group Risk Management. This enables the collection of a broad spectrum of data across the organisation and identifies the biggest risks for FLSmidth.

Based on this assessment, Executive Management identifies high-risk issues for the coming year and ensures that actionable mitigation plans are in place. In addition Executive Management reviews the mid and long term risks to ensure proper mitigation and attention.

During the year the Risk Committee meets to review the top risks and follow up on mitigation plans. This ensures that ownership for managing the risks is anchored in the business and that the focus on proactively identifying, managing and mitigating the risks continue throughout the year.