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64 SAAB ANNUAL REPORT 2011
ADMINISTRATION REPORT > RISKS AND RISK MANAGEMENT
OPERATING RISKS
RISK Develop and introduce
new system and products
Managing long-term
customer projects
Environmental risks
and liabilities
Liquidation of leasing
operations
SIGNIFI-
CANCE The risk is that Saab does
not reach the levels of
business required for its
products to be profitable.
The risk is that Saab will
be unsuccessful in meeting
customer requirements, as a
result of which the commit-
ment is not fulfilled.
In its operations, Saab
handles a wide variety of
chemical products that
are classified as harmful to
humans and the environ-
ment. The most important
environmental risks involve
hazardous chemicals,
building and plant fires,
and soil contamination.
Saab offers lease financing
in connection with aircraft
sales on the market. The
risk in the portfolio is that
Saab is unable to lease out
the aircraft. The impact on
Saab’s profitability could be
negative if the aircraft are not
being used.
RESPONSI-
BILITY The Group takes an ac-
tive approach to product
management. A high degree
of modularisation in project
management allows Saab to
reuse product solutions in its
offerings.
Before a contract is entered
into with a customer to
supply a product, solution or
service, a thorough analysis
is always done of the condi-
tions and risks associated
with the delivery using a pro-
ject management process
established by Saab.
Saab has introduced strict
routines for assessment,
supervision and control
of various environmental
risks.
Part of the leasing fleet is fi-
nanced through US leverage
leases, rents from which are
insured through the Export
Credits Guarantee Board
(EKN) in Sweden. Part of the
portfolio is financed internally
and recognised as assets
in the statement of financial
position. Saab’s direct risk-
taking in the leasing fleet
has been managed primarily
through various types of
insurance.
2011
Various measures were
launched in 2011 to further
improve efficiencies in devel-
opment processes, including
the continued establishment
of centres of excellence for
various aspects of develop-
ment work. Learn more on
page 23.
A review was made of the
project management pro-
cess in 2010 and a modified
process for managing long-
term customer projects was
introduced in 2011.
Only a few minor soil
remediation projects
were necessary in 2011,
the total cost of which
amounted to less than
MSEK 0.5.
Saab’s leasing portfolio
consisted on 31 December
2011 of 82 turboprop Saab
340 and Saab 2000 aircraft.
Of the portfolio, 42 aircraft
are financed through US
leverage leases. Reserves
in the statement of financial
position related to the leas-
ing portfolio and provisions
for commitments for regional
aircraft are considered suf-
ficient to cover the remaining
risks.
2012
We will continue to improve
our product managament
process by introducing a
uniform product portfolio
pocess.
Follow-up and ensure
implementation of the risk
management process.
In 2012, Sensis and
E-COM will be integrated
in Saab’s environmental
risk work.
The leasing fleet is expected
to be liquidated by 2015.
Until then, Saab will carry
out these operations in ac-
cordance with the terms and
conditions of its insurance.