Some risks may be due to events in the outside world and affect a certain sector or market, while others are associated with the group’s own business.
The New Nordic group carries out regular risk analysis for both operational and financial risks. Operational risks are mainly associated with the business and the external risks that affect the group. Some can be managed through internal procedures, and in some cases the group can influence the likelihood of a risk-related event occurring. Other risks are determined to a greater extent by external factors. If a risk-related event is beyond the company’s control, work is aimed at mitigating the consequences.
There are risks and uncertainties affecting the New Nordic group that are related to the shift in the industry, weather conditions, macroeconomics and geopolitical events, sustainability issues, foreign currencies, taxes and various regulations, but also in connection with expansion into new markets, the launch of new concepts and how the brand is managed. A description of the New Nordic group’s operational and financial risks is given in the annual report 2019.
The New Nordic group’s approach to risk management and internal control will described in more detail in the corporate governance report in the future. The description includes the New Nordic group risk framework including: Control Environment, Risk Assessment, Control Activities, information and Communication, as well as Monitoring Activities.