Risk management process

Risks are assessed and documented by the respective risk owners at least twice a year as well as on a continuing basis where necessary. An assessment is made of the changed level of existing risks as well as of potential new risks. Strategic risks, such as increased competition, changes in the assortment and other changes in the external business environment that can affect Axfood’s strategic objectives, are managed as part of the continuing work of the Board of Directors and Executive Committee.

Risks are classified and categorised according to how well countermeasures are implemented. The risk owners are the members of the Executive Committee, who are responsible for the risk maps in their respective areas. Axfood has a Risk Committee, which is headed by the Group’s Risk Manager. The Risk Committee is tasked with, among other things, following up on planned countermeasures and consolidating the risks identified by the respective risk owners. A compilation is made centrally and coincides with the timing of the Group’s business plan, which facilitates budgeting for decided countermeasures. For a description of the organisation, governance and reporting of Axfood’s risk management, see the illustration below.

Incident management

Incident reporting systems are in place for the Group. Through these systems, a compilation is made that provides documentation for determining how operational risks are to be prioritised and managed effectively and systematically.

Crisis management and continuity plans

Axfood has crisis management plans in place for which drills are conducted on a regular basis by all of the companies’ crisis management teams. These plans and drills are intended to ensure preparedness for a crisis and that the right actions are taken at the right time by the designated key functions. The aim is to minimise acute damage in a situation in which normal procedures are insufficient. For events in which a crisis risks being drawn-out, Axfood works preventively and actively with continuity plans to minimise the duration of any business interruption. 

Insurance

Axfood has Group-wide insurances that are reviewed yearly by an independent, external party. The insurances cover, among other things, property, business interruption, product liability, cyberattacks, transports, and directors and senior executives liability. All of Axfood’s insurances are renewed before expiration.