Risk management and internal control for increased value creation

Sound risk policies are essential for value creation and risk management has been integrated in the management of the enterprise. The most important risks are related to market operations, financial management, project execution, operating activities and framework conditions. The international growth contributes to increased project risk, both in the concept and implementation phases. Internal control is a key element of risk management.

Statkraft's management system provides common guidelines for the Group as regards risk management and internal control. The management system formalises requirements related to how risk management and internal control will be exercised in the processes. We monitor risks both locally, where they arise, and at the group level, and the results are incorporated in the reporting to the corporate management and board. Risk management is integrated in all business activities and is followed up within respective units using procedures for the monitoring and mitigation of risk.

Statkraft is exposed to risk across its entire value chain.  The most important risks are related to market operations, financial management, project execution, operating activities and framework conditions. Growth and increased internationalisation place greater demands on risk management in the investment portfolio, and we have established a central investment committee for improved handling of risk related to individual investments and across project portfolios.

Internal control is a key element in sound risk management. We are working continuously, to further improve internal control in the group. Statkraft has a system for internal control over financial reporting. The system aims to contribute to reliable financial reporting.