Risks and the management of risks

Hansel’s risks involve tendering related to joint procurement and contractual management. Hansel reduces the risks related to tendering by ensuring good knowledge of procurement legislation and by following the company’s tendering process. The company uses internal guidelines and a quality assurance system for competitive tendering. A particular 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 from customers as such.

Each contractual supplier’s financial, technical and professional ability to provide the procured products or services is assessed at the tendering stage. When establishing a joint procurement procedure, Hansel also verifies that the selected suppliers are not subject to any sanctions against Russia. The contractual suppliers are monitored throughout the contract period. The company regularly identifies the key risks with a risk management expert. The Board of Directors regularly discusses risks.