Saab 2013 Annual Report Download - page 58

54 SAAB ANNUAL REPORT 2013
ADMINISTRATION REPORT > RISKS AND RISK MANAGEMENT
OPERATING RISKS
RISK Develop and introduce
new systems and
products
Management of long-
term customer projects
Environmental risks
and liabilities
Compliance risks Information security risk
SIGNIFI-
CANCE
The risk is a failure by
Saab to achieve the
levels of business re-
quired for its products
to be protable.
The risk is a failure by
Saab to meet customer
requirements, as a re-
sult of which the com-
mitment is not fullled.
In its operations, Saab
handles a wide variety
of chemical products
that are classied as
harmful to humans and
the environment. The
most signicant envi-
ronmental risks involve
hazardous chemicals,
building and plant res,
and soil contamination.
The risk is a failure by
Saab to comply with its
commitment to act in an
ethically correct manner in
all that we do, based on
current legislation, our
own Code of Conduct and
common industry stand-
ards.
A large business risk exists
if we are not able to handle
sensitive information in a
correct manner. If we do
not succeed with this it
would have serious conse-
quences for our brand and
reputation as well as hurt-
ing the relationship with
our customers.
MANAGE-
MENT
The Group takes an ac-
tive approach to prod-
uct management. A
high degree of modu-
larisation in project
management allows
Saab to reuse product
solutions in its offer-
ings.
Every contract with a
customer to supply a
product, solution or
service is always pre-
ceded by a thorough
analysis of the condi-
tions and risks associ-
ated with delivery,
based on an internal
process established
within Saab for the
management of cus-
tomer contracts.
Saab has introduced
strict routines for as-
sessment, supervision
and control of various
environmental risks.
Our Code of Conduct is
complemented by de-
tailed directives and poli-
cies within relevant areas.
Our compliance pro-
gramme also includes ex-
tensive internal training
and clear management
structures with special
compliance functions des-
ignated to manage oper-
ating risks and the further
development and im-
provement of existing reg-
ulations and processes.
Saab has also established
a whistle-blower system.
Saab has a systematic,
riskbased and processori-
ented view on how to han-
dle information with very
clear rules and routines for
all levels in the organisa-
tion. The measurement for
management of security
risks are followed up by a
systematic focus on qual-
ity, continuous training of
personnel supplemented
with for example elemen-
tary advises regarding
how to handle information
in connection with busi-
ness travel, meetings and
communication.
2013 During 2013, the imple-
mentation of various
measures to further en-
hance our development
processes continued.
The portfolio manage-
ment system has also
been actively used on a
general level to aid de-
cision-making on in-
vestment prioritisation
from both the market
and protability per-
spectives. In 2013,
Saab also launched its
product database with
more than 500 prod-
ucts grouped in prod-
uct areas. The product
database is linked to
Saab’s CRM system to
support the new market
area organisation.
In 2013 we continued
our efforts to ensure the
implementation of the
project management
process. The process
has been adapted to
changes in Saab’s in-
ternal governance and
to new external de-
mands. The Winning
Business process has
also been adapted to
the market area organi-
sation that was intro-
duced in January 2013.
Health and environ-
mental information on
chemical products is
available in the Group’s
chemical data system.
In 2013, several activi-
ties have been initiated
to meet the anticipated
prohibition on the use
of certain hazardous
chemicals, according to
the REACH chemicals
legislation.
In 2013, we continued
training business manag-
ers in conducting corrup-
tion risk assessments for
each deal. The training
programme for all employ-
ees on anti-corruption is-
sues was supplemented
with mandatory web-
based training for all em-
ployees.
In 2013 Saab expanded
the security organisation
and also an external audit
of our systematic security
work was performed. In
addition an internal policy
for the work with security
issues for the Group was
introduced.
2014 The introduction of
Saab’s new product da-
tabase continues. It will
also support our efforts
to make product devel-
opment more efcient
through modulasation.
This means that cus-
tomer needs can be met
faster and at a lower
cost.
In 2014 we will continu-
ously improve the pro-
cess by adapting to
new external and inter-
nal demands.
Many measures that re-
duce CO2 emissions
will be implemented. A
project will be launched
in 2014 to examine op-
tions for operating
Gripen E on biofuel.
FMV, the US Air Force,
General Electric, Saab
and a biofuel manufac-
turer are participating in
the project. The phase-
out of hazardous chem-
ical substances will
continue.
We will strengthen our
whistle-blower function in
2014 by introducing a new
system that allows exter-
nal reporting via internet
and telephone. Work has
begun on the new system
and our goal is to begin
implementation during the
rst quarter. Other initia-
tives underway include the
development of additional
tools for corruption risk
analyses and an improved
system for monitoring and
auditing marketing con-
sultants and other busi-
ness partners.
In 2014 Saab is aiming at
preparing a long-term
strategy and action plan
aiming at reaching our tar-
get to become recognised
as world leading within
business security and risk
management. In addition
we will also strengthen
and intensify the commu-
nication with all employ-
ees about how to increase
the general security level.
The risk management pro-
cess within our Winning
Business process will also
be further development
and strengthened.