Focus areas

Risk management was developed into a more dynamic direction during 2009 by adding quarterly risk reviews and updates to the agenda of Group Executive Committee meetings and by providing regular risk management updates for both the Board of Directors and the Audit Committee.

Risk workshops

The management teams of most Business units and several Group functions attended risk workshops in 2009. These workshops covered risk identification, risk evaluation and risk mitigation, and the connections with current strategy planning and performance management processes.

Crisis management

Outokumpu initiated a systematic programme of crisis management in 2009. Crisis management teams at corporate level received training in handling different crisis situations and cooperation with internal and external stakeholders.

Credit risks

The reduction of insured credit limits by credit insurers has led to an increase in the proportion of uninsured sales. The current shortage of credit limits is expected to continue and the risk of defaults by customers is expected to continue, setting increased requirements for credit management of the Group. Following the Group's new financial risk policy, a development programme aimed at enhancing the organisation's ability to make timely, accurate and high-quality credit decisions was initiated in 2009.

Security and fire safety

Security and safety arrangements in fire situations were further improved at several Group sites in 2009. Related development and change initiatives were based on local self-assessment at sites as well as on systematic audits and Group-wide instructions.

Realised risks

No major damage to Group property or business interruptions occurred in 2009. The most significant risks realised during the year were related to structural issues in stainless steel markets and to the global recession, with the latter having an impact on stainless markets and the Group's ability to implement planned investment projects.