Risk management

Managing risks on behalf of customers and of Securitas is the core of our business, and has the ultimate aim of giving the organization the ability to accept and control the risks that are necessary if Securitas is to be able to accomplish its strategies and achieve its objectives. The management of risks takes place through a structured process of assigning responsibility that is the basis of the Group’s corporate governance and internal control, and stretches upwards from branch managers to Group Management and the Board of Directors, who answer to the Annual General Meeting.

Background

Securitas is exposed to various types of risks in the day-to-day running of its business. These risks fall into two main categories, operational risks and financial risks. Both can affect the financial performance and position of the Group if they are not managed in a structured way. Operational risks are risks associated with day-to-day operations and the services we provide to our customers. They may arise, for example, when services do not meet the required standards and result in loss of property, damage to property or bodily injury. Financial risks arise because the Group has external financing needs and operates in a number of foreign currencies.

To allow the divisions, countries and regions to focus fully on their operations, financial risk management is centralized as far as possible on the Group Treasury Centre. For a further description of the management of financial risks, refer to Securitas AB's Annual Report 2007, Note 6 on page 59 in the Group’s Notes and comments.