Risk management is an integral part of the Group’s management, monitoring and reporting systems. The identification and management of risk factors takes into account the special features of our business and operating environment.
From a strategic point-of-view Caverion has developed its business mix towards a more stable and balanced direction in order to handle changing economic cycles. Regular monitoring and analysis make it possible to react quickly to changes in the operating environment and to utilise the new business opportunities. The company has an extensive customer base, comprised of customers of various sizes from the public as well as private sector.
The Group's aim is to grow both organically and through acquisitions. Risks associated with acquisitions and outsourcing are managed by selecting projects according to strict criteria and effective integration processes that familiarise new employees with Caverion's values, operating methods and strategy. The Group has a uniform process and guidelines for the implementation of acquisitions.
Caverion's typical operational risks include risks related to tenders, service agreements, project management and personnel. With regard to various projects, it is important to act selectively, taking into account the risks and profitability of the projects, and review the content, risks and terms and conditions of all contracts and agreements in accordance with specified processes.
In 2015, the investigation of violations of competition law related regulations in the technical services industry in Germany continued. As part of the investigation German authorities have searched information at various technical services providers, including Caverion. Caverion actively co-operates with the local authorities in the matter. Based on the currently available information, it is not possible to evaluate the magnitude of the potential risk and costs for Caverion related to these issues at the closing date. However, it is possible that the costs incurred and sanctions imposed on the basis of the investigation can be material.
Following the insolvency of Imtech Germany the commitments of the consortium ImCa at the Berlin Brandenburg Airport lie solely with Caverion. At the end of 2015, this did not have a material impact on Caverion’s commitments at the end of the period.
Caverion’s business does not include significant environmental risks.
In 2015, Caverion strengthened its Enterprise Risk Management and Compliance organisations and started to re-evaluate and develop the related processes. Caverion has also launched an annual, group-wide compliance training program that all employees will go through.