Risk Management

At Tele2, we believe that every risk also presents an opportunity. We work proactively to identify and monitor the most important risks through an enterprise risk management program. The process is described briefly below.

Risk management covers strategic, operational, financial reporting and compliance risks. The purpose of Tele2’s risk management process is to achieve the following objectives:

• Fewer Surprises - To ensure that all key business risks are identified, evaluated, controlled and monitored
• Reduced Loss and Increased Reward - To assist the Board and management with their prioritisation and understanding of risks
• Effective decision making - To assist management at all levels with prioritising their activities

The Board of Directors bears overall responsibility for risk management whereas the President & CEO is responsible for day-to-day risk management. Tele2 has a central risk management function within Group Finance & Legal that coordinates the risk management efforts. The President & CEO reports to the Board, at each meeting on the key risks facing the Company in reaching its strategic objectives.

Tele2’s risk management program consists of the following key steps:

Common understanding of risk – A basic requirement for risk management is a common understanding of risk, which at Tele2, means uncertainties that would restrict us from achieving our strategic objectives. Since our strategy is customer-focused, so is our risk analysis.

• Risk Information - Tele2 continuously gathers risk information from internal and external sources which is analyzed regularly by executive management. Based on the risk importance and probability, management strategies are evolved or adjusted.
• Risk Mitigation - Risk owners at Tele2 devise methods or risk responses to effectively manage the risk level.  A risk response could be to prevent or avoid, accept, reduce or share the risk depending on risk information gathered. Each of these types of responses leads to a number of control actions that are implemented.
• Risk Monitoring – Tele2 has put in place formal and informal internal reporting mechanisms that provide information on the risk level for key risks. These include financial planning, financial reporting, regional management structures and financial or business review meetings.