In brief, Ambea’s risk managament and evaluation entails as a first step to identify the group’s relevant risks within the framework of the financial reporting, but also within the regular course of business and the quality work pursued by the Company.
The audit committee and executive management are responsible for ensuring that the Company has a process for risk assessment and risk management for the financial reporting.
Ambea continually evaluates the risks associated with its operations, both financial and operational, and control and supervise factors that may affect Ambea’s operating profit/loss. Risk assessment is also a key aspect of the annual strategy process, where specific risks in relation to Ambea’s ability to achieve strategic ambitions are evaluated. When a risk has been identified it will be evaluated in relation to how big impact a risk can have on the company’s strategy should the risk materialise and the probability for the risk to materialise. Furthermore, risks within internal control as regards the financial reporting are continuously analysed and evaluated within the regular course of business.
The company has determined that one of the most significant risk challenges is how to manage quality risk, i.e. the risk that the quality will not meet the requirements of the authorities or care recipients and the political risk due to the fact that conditions for the company’s business are largely based on political decisions. Both of these risks are best managed by having a sound quality management model with clear ethical guidelines and a high degree of transparency in Ambea’s operations. The quality and sustainability committee and the executive management are responsible for ensuring that a process for risk assessment and risk management is available for the quality and sustainability work.