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62 SAAB ANNUAL REPORT 2011
ADMINISTRATION REPORT > RISKS AND RISK MANAGEMENT
RISKS AND RISK MANAGEMENT
2010
tAnalysis of business risks and risk
processes
tReview of financial controls
2011
tDesign and implementation of a
harmonised rsk management pro-
cess throughout the company
2012
tTraining, follow-up and completed
introduction of the harmonised rsk
management process
RISK MANAGEMENT PRIORITIES 2010-2012
POLITICAL RISKS
RISK Part of Saab’s sales is classified as
strategic products which are regu-
lated by various laws.
Access to vital components and systems
may be subject to export restrictions and
regulations of various kinds.
Customers’ inability to fulfil
current contracts
SIGNIFICANCE Amendments to national laws and
ordinances, including international
agreements, could affect Saab’s
sales.
Amendments to national laws and
ordinances, including international
agreements, could affect access to vital
components in various systems and
subsystems.
The risk consists of customers’ in-
ability to fulfil current contracts due to
economic, political or other circum-
stances such as natural disasters, an
economic crisis, a shift in power or an
embargo.
MANAGEMENT Saab manages political risks through various types of export guarantees, insurance solutions and other instruments. It is
impossible, however, to avoid losing business opportunities or incurring damage if political risks are realised.
Saab’s business generally entails significant investments,
long periods of time and product development or refine-
ment. In addition to customer and supplier relations,
international operations involve joint ventures and other
collaborations as well as the establishment of operations
abroad.
All businesses entail risk. A risk can be specic to the company
or related to a certain industry or market. Certain risks can be
fully managed by the company, while others are out of its control.
Saab’s operations primarily involve the development, production
and supply of technologically advanced hardware and soware to
customers around the world. e international part of the business
is growing.
Operations entail signicant risk-taking in various respects. e
key risk areas are political, nancial and operational risks. Pages
62–63 provide information on the political and nancial risks. See
pages 64–65 for more information on the operating risks.
MANAGING RISKS
Signicant risks that are identied are managed continuously at all lev-
els of the organisation and in strategic planning. Various policies and
instruments govern the management of signicant risks. In addition,
Saab has an independent audit unit that serves as a dedicated resource
to independently audit the eectiveness of internal control processes.
Risks are also managed by procuring insurance. Saab has a Group-wide
programme where insurance is obtained on the market or through the
Group’s own insurer, Lansen Försäkrings AB.
Risk analysis and activities 2011
In 2011, we worked on introducing a uniform risk evaluation pro-
cess within the Group in line with international risk management
standards. e process is designed based on an analysis in 2010 of
various aspects of the risk processes used by the business areas and
divisions. e work also included a review of the risk management
process for long-term customer projects.
In 2011, we also began introducing an improved process for
reporting nancial controls within Saab. For more information, see
the corporate governance report, pages 139–140.