Key risks 2022

Key risk

What does this mean?

Examples of what do we do (mitigation)

Shift to growth Line chart (icon)
Key risk

Geopolitical development

What does this mean?

Trends towards regionalization or nationalization and trade wars

Examples of what do we do (mitigation)

Reviewing regional strategies and footprint distribution and supply chain

Key risk

Securing key supply

What does this mean?

Potential resource constraints around supply of batteries, green electricity and mineral supply

Examples of what do we do (mitigation)

Different initiatives around sourcing and business continuity planning

Key risk

Acquisition value creation

What does this mean?

Business case delivery
Ensure efficient administrative integration

Examples of what do we do (mitigation)

M&A Tracker/review process and score cards
Integration follow-up processes with business reviews

Key risk

Technology must-wins

What does this mean?

Electrification of the mine
Closed loop manufacturing
Execution of the digital shift and data driven productivity

Examples of what do we do (mitigation)

Careful performance management and execution of the strategy for M&A, product development and the 6 moves for enabling the digital shift

Digital shift Wifi symbol (icon)
Key risk

Digital disruption

What does this mean?

Efficient systems upgrades
Cyber security
Information security
Disruption by digital players

Examples of what do we do (mitigation)

Careful project management and lessons learned for implementation of new systems support, cyber security improvement program and the six steps Sandvik has identified to enable the digital shift

Sustainable shift S symbol (icon)
Key risk

Being compliant

What does this mean?

Ensuring an ethical culture
Increased regulatory complexity (e.g. Russia)
Stricter financing requirements

Examples of what do we do (mitigation)

Learning and workshop initiatives across the organization, digital journey and with a new Third Party Management policy and process

Key risk

Changing regulatory requirements

What does this mean?

Sustainability reporting requirements
Trade sanctions
Product/safety requirements
Change to data driven processes

Examples of what do we do (mitigation)

CSRD preparation project, compliance digital journey to increase agility

Agile through cycle Line chart with curve (icon)
Key risk

Managing inflation

What does this mean?

Price management
Leverage procurement capabilities

Examples of what do we do (mitigation)

Strong focus on price management and tracking price/volume growth
Different sourcing initiatives to increase flexibility/agility

Key risk

Managing downturn

What does this mean?

Meeting target EBITA range
Timely execution of contingency plans

Examples of what do we do (mitigation)

Contingency plans, strong performance management and agile decision process with decentralized approach for each part of the business

Key risk

Business interruption

What does this mean?

Energy supply
Supply chain/logistics
Disruptive events (fires, natural disasters, pandemic)

Examples of what do we do (mitigation)

Energy supply mapping and mitigating activities, carefully managed and active management of logistics/supply and business interruption planning

Customer’s 1st choice First place medal (icon)
Key risk

Understand changing customer needs

What does this mean?

Timely adjustment to market transformation
Ensuring customer value

Examples of what do we do (mitigation)

Customer satisfaction measurement with divisions, business units and sales areas taking necessary actions

Employer of Choice Person with a heart (icon)
Key risk

Key talent attraction and retention

What does this mean?

New talent (digital, sustainability)
Safeguard core talent supply (engineering, battery)
Re-skill existing workforce

Examples of what do we do (mitigation)

Talent attraction and development projects in all parts of the business.