Getinge 2022 Annual Report
Getinge 2022 Annual Report
Introduction
Strategy
Corporate Governance
Annual Report
Sustainability Report
Other information
Contents
Assurance framework, risks
and risk management
Risk management framework
Getinge actively and systematically manages the risks that the
Group is exposed to through its operations.
Getinge has a framework for managing risks that could affect
the fulfillment of the Group's targets and strategies. This frame-
work entails, for example, that the Getinge Executive Team
conducts an annual evaluation of material risks and their effect on
Getinge's operations, and decides on measures to reduce risks and
their potential effects. This work is continuously monitored by the
Getinge Executive Team during the year.
The Getinge Executive Team's risk evaluation is reported to the
Board of Directors and serves as a key starting point in determining
the areas that Corporate Internal Audit is to examine.
The three Business Areas are fully responsible for their results.
In addition, the three Business Areas and the Global Sales and
Service organization are owners of risk in their respective areas.
Accordingly, they have their own risk-management structures in their
respective operations. Corporate functions assist the Business
Areas and the Global Sales and Service organization in managing
risks in a number of areas by providing governance. The group
support functions are responsible for supporting and coordinating
the development of the organization and driving synergies in their
respective areas.
A number of established forums that focus on risks of a
particular nature conduct regular evaluation and monitoring to
ensure correct coordination and management from a Group
perspective. To continuously identify, manage and follow up on
risks, several forums have been established such as Ethics
Committee, Sustainability Board and the forum for the Group's risk
managers, as well as a Chief Information Security Officer (CISO)
to manage cyber risk and the Getinge Centre of Excellence to
address cybersecurity related to the Group's products. This is
in addition to quarterly risk follow-up with Business Areas and
the Global Sales and Service organization.
Risk assessment
By conducting quantitative and qualitative risk analyses based on
the offering and operations, Getinge identifies the key risks that
could prevent the achievement of business and financial targets.
In addition, several units in each Business Area and in the Global
Sales and Service organization are analyzed to gain a more detailed
understanding of the actual compliance of existing rules and
regulations. Measures to manage identified risks are thereafter
formulated.
The overall responsibility for identifying and addressing
potential risk areas lies with the Getinge Executive Team and the
business operations. The Ethics & Compliance and Corporate
Internal Audit functions assist with support and ongoing monitor-
ing as well as investigations and internal audit, which help to
identify risk.
In 2022, Getinge has continued its efforts to strengthen risk
identification, preventive measures and management through
Corporate Internal Audit and the Corporate Risk Management
function. Management of the Group's risks is based on Getinge's
decentralized structure, since knowledge about risks in the Group
is present in operations.
The Getinge Executive Team has identified six priority risk areas
resulting from the group-wide analysis performed in 2022, which
are presented in the table on the following pages. In addition to
these priority risks, regular measures are taken to manage other
risks according to needs and resource availability. Each of the
primary risk areas is owned by a specific member of the Getinge
Executive Team and work is being conducted to identify specific
risks in each area and develop plans to prevent risks, mitigate the
potential effects and deliver on these plans.
It is important to note that the risks presented on the following
pages are not an exhaustive description of the Group's risk
exposure. However, these are the risks that have been deemed to
be most relevant for the Group to actively manage.
Getinge's insurance program
Strategy
The Group works actively with loss prevention activities, for
example, through its extensive quality activities and by preventing
interruption risks in the operations. Getinge is to act as if the Group
were uninsured. That means that Getinge continuously considers
risk factors and manage them as part of the daily work. Actively
monitoring incidents and correcting underlying causes means that
claims related to product liability can be prevented. The insurance
program exists to protect the consolidated balance sheet and to
avoid fluctuations in the income statement.
Group-wide insurance program
Getinge has a group-wide insurance program that encompasses
the global operations. The aim is to cover insurable risks with
adequate limits based on current risk exposure levels. Insurance
policies have been entered into with insurance companies with
high credit ratings and a documented ability to provide claims
assistance. A joint insurance program creates economies of scale
and ensures a harmonized approach to limits and deductibles. It
also creates a platform for building a balanced and cost-efficient
program to prevent fluctuations in earnings.
Customer value
Stable and standardized insurance coverage for the Group's
global operations also adds customer value since it is required in
many tender and procurement processes and when commercial
contracts are signed.
Ethics & Compliance
The above risk signaling system is supplemented by the Ethics &
Compliance function. Within the scope of its assignment, the Audit
and Risk Committee monitors the work of the Ethics & Compliance
function. Read more about the Group's work on Ethics & Compliance
and responsible leadership in the Ethics & Compliance report that
is available on the company's website. In 2022, work has progressed
on building up the Ethics & Compliance function to ensure that it
can independently work with business ethics and compliance.
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