Risk Management

Managing risks on behalf of customers and Securitas is the core of our business. Operational risks are managed through a decentralized approach according to a four-step model.

Financial Risks

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 fully focus on their operations, financial risk management is centralized.

Operational Risks

Operational risks are associated with running the operations and providing services to customers. As they arise in the local business operations, operational risks must be managed with a decentralized approach. Customer contract management and loss prevention are essential activities in this regard.

Business Risk Evaluation Model

Minimizing the risk of a loss occurring, and thereby protecting our customers and employees, is the most important objective of operational risk management. To evaluate the operational risks in new and existing businesses, we use a business risk evaluation model.

The model focuses on important dimensions of the assignment and the  relationship with the customer. Loss prevention is integrated into all steps of the business risk evaluation model. The model can be broken down into four stages, each of which plays an essential part in the understanding and acceptance of risks in new and existing businesses. Risks should be managed in a balanced manner, as symbolized by the risk scale tool.

Assignment

This is the first stage of the process. The key points are the size of the project, its duration and whether it involves a new or existing service. Specific training and supervision requirements are also considered. 

Financials

This stage involves careful calculation of the profitability of the business. Managers have to assess the investment required and whether the contract involves any off-balance-sheet exposure. Payment terms also have to be considered, and a decision made as to whether the assignment will generate sufficient profit in relation to the risks.

Risk

The type of customer under consideration is of importance in terms of the level of operational risk and financial status. High-risk customers and large loss potential must be identified and checks must be performed to ensure that the necessary insurance is in place for the risk involved. The creditworthiness of the customer must also be assessed.

Contract

A fair division of responsibilities and risks between Securitas and the customer is essential in every contract. Standardized contracts are the norm. Reasonable caps on potential liability and indemnification for third-party claims are important.