LEAX has established a risk assessment procedure, meaning that the Company conducts annual risk analyses and risk assessments. In accordance with this framework, risks are identified and categorised into the following four areas
- Business cycle, market, and external risks
- Operational risks
- Sustainability risks
- Financial risks
LEAX’s objective with the risk analyses is to identify the most significant risks that may prevent LEAX from achieving its targets or realizing its business idea. The objective is further to evaluate these risks based on the probability that they will realize in the future and to what extent the risks would affect the Company’s targets if they were to realize.
Each individual risk is assigned a so-called risk owner. The risk owner has a mandate and responsibility to ensure that actions and controls are established and implemented. The risk owner is also responsible for monitoring, following up and reporting changes in LEAX’s risk exposure in relation to identified risks.
The company’s CEO is responsible for reporting identified risks to the Audit Committee and the Board on an ongoing basis. The Board evaluates and monitors the LEAX risk management system and conducts risk assessments. The purpose of this procedure is to ensure that significant risks are managed and that controls that counteract identified risks are implemented.
Control activities
LEAX has established a risk management procedure that includes a number of control activities of matters that must be in place and function in the risk management procedures. The control requirements constitute important tools that enable the Board of Directors to lead and evaluate information from the senior management as well as to take responsibility for identified risks.