Assessment and control of risk is a vital and integral part of our company management processes.
Our strategic goals and ambitions as well as the nature of our business-geographically spread within different cultures and variety of stakeholders - make it important to continuously update risk pictures at all levels.
Framework in place
SN Power has a risk management framework in place, which includes policy and risk appetite, structure, methodology, skills, culture and tools. This is applied both to new developments as well as throughout the project and asset lifecycles for the monitoring and mitigation of risk. Monitoring and follow up of risk is integrated in the ordinary reporting structure.
Balancing an acceptable risk profile and optimising returns on investments is challenging. Risk management and mitigation is therefore critical. SN Power uses risk analysis tools actively in its investment analysis of each country and each project.
SN Power has a balanced portfolio of investments including operating assets and greenfield projects under construction. These are distributed between different markets and geographic regions.
Risk mitigation measures include hedging parts of the company’s foreign exchange exposure related to equity investments, and evaluating equity insurance against political risk on a case-to-case basis. The local companies in which SN Power has invested manage exposures related to the operational activities.
As part of SN Power’s control system, internal audits of all engagements are carried out on a rotational basis.