Effective risk management is fundamental to informed decision making within the Company and has been integrated into every work procedure, across all our operations. Our Risk Management Policy supports continuous and safe operations as well as the Company’s corporate social responsibility objectives.
Landsvirkjun‘s risk management objectives:
- Support policy development and implementation
- Support successful, stable and responsible operations
- Support the systematic execution of tasks and projects
- Prevent or reduce undesirable incidents in operations
- Ensure an acceptable risk level in accordance with set guidelines
Landsvirkjun‘s Board approves the Risk Management Policy.
Landsvirkjun's risk is identified and mapped, based on the Company's main processes and construction projects. Risk identification is performed on a regular basis, according to a planned process, in accordance with risk management rules.
Risk analysis includes an assessment of ‘risk severity’, based on likelihood, potential impact and the relationship between the two. The potential impact of risk on financial status, image, health and safety or the environment is assessed, as appropriate.
Risk management may include accepting, avoiding, reducing, increasing or transferring risk. Measures are only implemented when the risk is considered unacceptable or if opportunities for improvement are identified.
Risk management, which involves risk monitoring and disclosure, supports operations by using approved risk management policies and procedures, and is designed to ensure that risk is within authorised risk acceptance levels.
Principles of risk management
Each operating unit is responsible for managing its own risk. However, centralised risk management is sometimes necessary. The Treasury Division is responsible for managing the Company's market and liquidity risk. The Information Security Manager and the IT & Digital Development Division are responsible for the security of the major network and information systems. The Human Resources Division manages employee risk and the Legal Division oversees external requirements and compliance.
You can download the Financial Statements for 2019 in electronic form here. The documents contain the financial statements as a whole in Acrobat (pdf) document and the key figures in an Excel (xls) document.