RISK MANAGEMENT

􀁷 PEOPLE

People and operational

Risk of aging Family members and the scarcity and/or availability of capable, skilled and diverse (future) Family members. Stimulating education and development through our internal academies. Working towards ISO45001 certification for all Business Units. Continued focus on our businesses attractiveness by promoting diversity and inclusiveness. Attracting new Family members with complementary talents and skills.

􀁹 SUSTAINABILITY

Strategic, operational and people

Risk regards to Roadmap to Paris 2030: acceleration of transition to sustainable technologies and energy sources, availability of permits, technical solutions and technical infrastructure. Ongoing C2C and SDG certification.

􀁹 INNOVATION AND DIGITALISATION

Strategic, operational and people

Risk of speed and size of innovation and digitalisation. Investments in new and innovative projects to improve business processes, procedures and sustainability. Stimulating innovation meetings to collaborate on new ideas or solutions i.e. ergonomics improvements. Continuous investment in digitalisation to improve services and make work easier and quicker.

􀁕 CREDIT DEBTORS

Operational and financial

Broad diversification of customer portfolio. Most outstanding debtors amounts are insured by credit insurance company based on a customer’s creditworthiness test. Supplemented with strict internal debtor policy.

􀁷 LIQUIDITY, CASH FLOW AND INTEREST RATE

Financial

Liquidity and cash flow positions are monitored continuously. Scenario planning is used. The interest rate risk is partly hedged by financial instruments.

􀁷 EXCHANGE RATE

Strategic and operational

Risk of exchange rate volatility. Exposure in the upstream material supply and in our operations in Poland and the United Kingdom. Future transactions in Poland partly hedged.

The introduction of the monthly reporting based on the secured reporting format, including the continuous focus on the year end estimated results, has contributed to the risk management structure as an integral part of our internal control and monitoring procedures.

The risk-averse approach and the hedging or mitigation of the risks mentioned above ensured that the impact of undesirable changes in the commodity and exchange markets in 2021 was manageable for ROTO. The continuation of this policy will ensure that ROTO is adequately protected against these types of risks.