The primary objective of risk management in Aiforia is to support the company’s strategy execution, continuity of operations and realization of business objectives by anticipating any risks involved in the company’s operations and managing them in a proactive manner. Enterprise risk management emphasizes the role of corporate culture and is an integrated part of operations, planning and decision-making in Aiforia.
Aiforia applies generally applied principles and practices. Leveraging risk management practices throughout the organization improves decision-making in governance, objective-setting, and day-to-day operations. It helps to enhance performance by more closely linking strategy and business objectives to risk. When accomplished, it provides Aiforia a clear path to creating, preserving and realizing value.
Aiforia’s risks are divided into the following main categories: strategic risks, operational risks, financial risks and compliance risks. The main categories include, but are not limited to the subcategories shown below:
Strategic risks are uncertainties mainly related to the operating environment and the company’s ability to leverage changes in the operating environment or to prepare for them. These may include general economic situation, competitors, legislation, or technological development. Strategic risks may relate to both financial and non-financial objectives. Appropriate risk treatment is implemented so that the chosen strategy is within the company’s risk tolerance.
Operational risks are circumstances or events, which can prevent or hinder the attainment of objectives or cause damage to people, property, business, information or any other operations of the company.
Financial risks are risks related to Aiforia’s financial position. These include risks concerning the availability and cost of financing, changes in foreign exchange rates, and investments.
Compliance risks are risks related to exposure to legal penalties, financial forfeiture and material loss an organization faces when it fails to act in accordance with industry laws and regulations or internal policies.
Risk management governance
The Board of Directors monitors and is responsible for ensuring that Aiforia’s risk management process functions are comprehensive. The Board defines the risk appetite and tolerance. The Board is also responsible for approving enterprise risk management related company policies.
The operative management is responsible for achieving the set objectives and controlling, managing and mitigating risks. Operative management is also responsible for the risk management work, and for ensuring the performance of the risk management process and the availability of sufficient resources.
Chief Financial Officer is responsible for establishing instructions and providing advice to the operations and functions concerning enterprise risk management, and for monitoring the practical implementation of the process. CFO reports key risks to the Board of Directors on an annual basis.