Nokia 2005 Annual Report Download - page 197

Notes to the Consolidated Financial Statements (Continued)
37. Principal Nokia Group companies at December 31, 2005
Parent Group
holding majority
%%
US Nokia Inc. ..................................................... — 100.00
DE Nokia GmbH ................................................... 100.00 100.00
GB Nokia UK Limited .............................................. — 100.00
KR Nokia TMC Limited ............................................. 100.00 100.00
CN Nokia Capitel Telecommunications Ltd .............................. 4.50 61.90
NL Nokia Finance International B.V. ................................... 100.00 100.00
HU Nokia Kom´ arom Kft ............................................. 100.00 100.00
BR Nokia do Brazil Technologia Ltda .................................. 99.99 100.00
IN Nokia India Ltd ................................................ 100.00 100.00
Associated companies
Symbian Limited .................................................. 47.90 47.90
A complete list of subsidiaries and associated companies is included in Nokia’s Statutory Accounts.
38. Risk management
General risk management principles
Nokia’s overall risk management concept is based on visibility of the key risks preventing Nokia
from reaching its business objectives. This covers all risk areas; strategic, operational, financial and
hazard risks. Risk management at Nokia is a systematic and pro-active way to analyze, review
and manage all opportunities, threats and risks related to Nokia´s objectives rather than to solely
eliminate risks.
The principles documented in Nokia´s Risk Policy and accepted by the Audit Committee of the
Board of Directors require risk management and its elements to be integrated into business
processes. One of the main principles is that the business or function owner is also the risk owner,
however, it is everyone’s responsibility at Nokia to identify risks preventing us from reaching our
objectives.
Key risks are reported to the business and Group level management to create assurance on
business risks and to enable prioritization of risk management implementation at Nokia. In
addition to general principles there are specific risk management policies covering, for example,
treasury and customer finance risks.
Financial risks
The key financial targets for Nokia are growth, profitability, operational efficiency and a strong
balance sheet. The objective for the Treasury function is twofold: to guarantee cost-efficient
funding for the Group at all times, and to identify, evaluate and hedge financial risks in close
co-operation with the business groups. There is a strong focus in Nokia on creating shareholder
value. The Treasury function supports this aim by minimizing the adverse effects caused by
fluctuations in the financial markets on the profitability of the underlying businesses and by
managing the balance sheet structure of the Group.
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