DSV Annual Report 2022
31
DSV Annual Report 2022
Corporate governance and shareholder information
Risk management
= III
Risk governance structure
As a global freight forwarder, we are exposed to a variety of risks that
are inherent to our operations. Managing these risks is an integrated part
of our management activities.
Our risk management framework is based on structured risk identification,
analysis and reporting processes, all of which provide the basis for ongoing
risk assessments and subsequent initiation of relevant mitigating actions.
Our flat organisational structure allows for fast escalation and timely re-
sponse to issues that may have a material impact on the Group's earnings
and financial and strategic targets.
The Board of Directors is responsible for the Group's risk management
strategy and the overall framework for identifying and mitigating risks. The
Audit Committee supervises compliance with the established framework.
The Executive Board is responsible for the day-to-day risk management
processes as well as the continuous development of the Group's risk
management activities.
Dynamic risk adaption
Ongoing key risk reassessment
Identification
Risks are identified
using the Group's
risk reporting tools.
علمما
Analysis and
assessment
Identified risks
are analysed
to determine cause,
impact and likelihood
of the risk occurring.
Recording
Identified risks
are recorded
and prioritised. Risk
owners are allocated to
identified key risks.
Reporting
Risks are reported
to the Board of
Directors, the Audit
Committee, the Execu-
tive Board and other
stakeholders in the
organisation.
Tracking →
Mitigation
Risks are monitored
and preventive measures
implemented in cooperation
with the affected business
units. When necessary, mitiga-
tion actions are initiated imme-
diately after risk identification.
Risk management
Our risk management process is structured into two parallel tracks:
1. Operational risk management - which includes continuous handling of
various identified risks resulting from our normal day-to-day operations;
2. Strategic risk management - which addresses key risks and other
mid- to long-term strategic risks.
Operational risk management
Every week, the operational risks that arise as part of the daily business
operations are registered and processed across the organisation, followed
by initiation of mitigating actions.
The risks and risk management procedures initiated are reported on a
weekly basis to the Executive Board as well as to senior management
across the Group.
Our weekly operational risk reporting forms the basis for the Executive
Board's day-to-day risk management activities and serves as input for
the regular reporting to the Board of Directors and the Audit Committee.
The weekly report is also distributed to lower management levels across
the organisation to create awareness and support knowledge sharing on
risks and other matters of importance to the Group.
Strategic risk management
The operational risk management process is followed up annually by
high-level strategic risk assessments. They focus on identifying and map-
ping the key risks facing the Group.
These assessments are based on input from the operational risk manage-
ment process and extensive risk surveys involving a number of key em-
ployees across functions, departments and regions.View entire presentation