Risks
Alliander works hard to keep energy reliable, affordable and accessible for everyone. Risk management helps bring focus to Alliander’s management so that we achieve our objectives. Our work involves risks, including safety and financial risks. These risks cannot be entirely eliminated. However, risk management does provide insight into these risks, so that we can take informed decisions about (measures to control) these risks. We use a single risk management method within Alliander. This ensures that the risk management process takes place in accordance with the same steps everywhere in the organisation.
Risk levels
Risks can be subdivided into five categories, ranging from very low to very high. The risk category depends on two factors: the probability of occurrence and the impact on the achievement of our strategic objectives. The potential impact on our objectives is assessed based on various aspects. Based on their probability and impact, each risk is assigned a place in the risk matrix. We assign a weighting to the risks based on dialogue at various levels in the organisation. As a result, our choice of approach for dealing with our uncertainties is both well-considered and deliberate.
Our main current risks
Risk awareness
The management of risks forms part of our governance and decision-making. The Management Board and Supervisory Board of Alliander regularly discuss the principal risks. They assess what effects the risks can have on the strategic objectives, the operations and our reputation.
Alliander is committed to complying with the guidelines in the (revised) Corporate Governance Code. In the ‘Corporate governance’, ‘Statement by the Management Board’ and ‘Other information’ sections, we provide more information on how risk management has explicitly been embedded in the organisation’s governance and decision-making procedures.
Risk appetite
To achieve the corporate objectives, we sometimes need to accept risks to a certain extent. The extent to which we are prepared to run risk in attaining our goals (i.e. our ‘risk appetite’) ranges from risk to risk.
When it comes to the safety of our employees, our customers and our networks, we take no risk whatsoever. All risks are excluded, where possible and realistic.
Our risk appetite is low when it comes to compliance. We are expected to comply with laws and regulations and are committed to acting in accordance with internal procedures and the Alliander Code of Conduct.
Where strategic risks are concerned, we seek the right balance between the risks and our longer-term ambitions.
We have a low appetite for financial risks. This ensures that we have a healthy financial basis and meet our key financial ratios.
Explanation of risks
The risk designations A to J in the matrix above are interactive. Clicking them produces an explanation of the relevant risk and details of how Alliander manages the risk. while also showing the development in each area over the past year in light of measures taken.
decreasing: ↓
neutral: →
increasing: ↑
Financial risks, including our credit risk, are explained in note 34 to the financial statements.