Risk overview

Epiroc has customers in around 150 countries, which implies both risks and opportunities. Effective risk management will help improve the performance of the organization and enhance Epiroc’s ability to achieve its objectives.

In the model below our key risks, as identified in Enterprise Risk Management assessment process, are presented. These have the greatest risk factor, by negative impact, and the closer to the middle they are, the more probable. Other risks, such as insurance, reputation as well as product quality and liability cover all four areas. Our mitigating actions and opportunity per key risk are described on the following pages.

Read more about our Risk management in our online report.

Epiroc has a methodology for enterprise risk assessment covering all divisions. Risks are identified based on Epiroc Risk Universe within divisional ownership with the overall goal of evaluating risks and remove or mitigate their effects by researching, planning, and implementing control measures as the organization deems necessary.

The purpose is to identify, understand and visualize potential risks before they occur, provide a safer and healthier working environment for our staff, and reduce risk for the business to strengthen business continuity. In more detail, the purpose is to answer essential questions as to the probability of risks materializing, their impact, causes and possible consequences, the effectiveness of existing controls and any further actions needed.

Risks assessed are captured in four main risk areas:

Strategic risks: Includes emerging and macro development risks.
Business risks: Encompasses common industry risks and risks related to the Epiroc business model, including operational risks.
Financial risks: Covers financial reporting risks.
Compliance risks: Focuses on avoiding breaches of applicable legislation or regulations.

Additionally, Sustainability is addressed as a fifth area to capture potential risks not identified in the other areas. However, many sustainability risks and impacts are integrated within the other risk areas. More detailed information on sustainability risks is presented in Epiroc’s double materiality assessment under ESRS 2 in the Sustainability statement and in each topical section. The consolidated outcome of the risk assessment is reported to both Group Management and to the Board of Directors, who monitor risk management annually.

The Code of Conduct describes who we are as a company and what we stand for. It outlines the appropriate business conduct and expected behaviors we all must follow to live up to the high ethical standards and integrity we hold ourselves to. Financial results are important and a measurement of success, but just as important is how we achieve these results

For Epiroc, conducting business in a responsible manner is of great importance. Epiroc chooses to work with business partners who stand behind the quality of the goods and services they provide and act in accordance with high ethical standards and integrity