Saab 2014 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2014 Saab annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

ADMINISTRATION REPORT
RISKS AND RISK MANAGEMENT
Saab’s business generally entails significant investments, projects
delivered over long periods of time, and high-tech product
development or refinement. Operations involve customer and
supplier relationships, joint ventures and other corporate alliances
as well as Saab’s own business activities in many countries.
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 advan-
ced hardware and soware to customers around
the world.
Our operations entail not insignicant risk-
taking in various respects. e key risk areas are
political, nancial and operating risks and we
discuss this in the following paragraphs.
MANAGING RISKS
Signicant identied risks are managed continu-
ously at all levels of the organisation and in the
strategic planning process. Various guidelines,
policies and tools govern the management of signi-
cant risks. In addition, Saab has an internal audit
unit that serves as a dedicated resource to indepen-
dently audit the eectiveness of a selection of inter-
nal 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 2014
In 2014, Saab continued to introduce and monitor
the harmonised risk assessment process within
the Group.
e focus was on information processing, the
development process and how Saab introduces
new systems and products in new markets, as well
as project execution. In addition, Saab worked
actively to improve how environmental risks are
managed, including preparations to replace the
chemical data system. In 2014, a new whistleblo-
wing unit and policy were established and several
other compliance initiatives were started so as to
continue to improve the processes at Saab.
POLITICAL AND MARKET RISKS
Saab supplies, among other things, systems and
equipment that are classied as strategic products,
the sale of which are regulated by national laws and
ordinances that also include international agree-
ments. Access to vital components and systems
may be subject to export restrictions and various
types of regulations.
Regulations are amended on an ongoing basis
and therefore impact Saab’s business opportuni-
ties. e ability to establish and maintain long-
term customer relationships is a key issue for Saab,
as some projects extend over decades. e Swedish
state – through the Armed Forces and FMV – has
traditionally accounted for a large proportion of
Saab’s product renewal, and therefore Sweden's
defence policy will aect Saab's business.
Another type of risk are market risks, which
can aect customers’ ability to full current cont-
racts due to economic or other circumstances such
as natural disasters, an economic crisis, a shi in
power or an embargo.
Managing political and market risks
Saab manages political and market 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 and market risks
are realised.
2013:
Internal focus on better understanding
local requirements. Ongoing training in
anti-corruption work for Saab employees
and partners. Continuous improvements to
the overall risk assessment process.
2014:
Implementation of measures to stream-
line development processes, including
thorough use of the product data-
base introduced in 2013. Strengthen the
whistleblowing unit and integrate Saab’s
environmental policy at Saab Kockums.
A number of measures were also taken
to increase security awareness among
employees.
2015:
In 2015, Saab intends on launching an up-
dated edition of the Code of Conduct and
a special code for suppliers. Other priori-
ties include further developing the product
development process and more strongly
integrating security in Saab's Win Business
process. In addition, Saab will continue to
improve the risk management process.
50 – SAAB ANNUAL REPORT 2014