Risks and risk management

Hansel’s risks involve tendering related to joint procurement and contractual management. Hansel reduces risks related to tendering by ensuring good knowledge of procurement legislation and by following the company’s tendering process. The company employs internal guidelines and a quality assurance system for competitive tendering. A special risk connected with the Government’s electricity framework agreement applies to the Government’s electrical derivatives, which are in Hansel’s name (see Note 5.2), even though the results of derivatives trading are charged to customers as such.

Each contractual supplier’s financial, technical and professional ability to provide the procured products or services is assessed during the tendering stage. When establishing joint procurement, Hansel also verifies that the selected suppliers are not subject to any restrictive measures against Russia. The contractual suppliers are monitored throughout the contract period. The company regularly performs a project to identify the key risks with a risk management expert. Risks are discussed by the Board every six months.