Alliander works hard to keep energy reliable, affordable and accessible for everyone. This 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 these risks and risk management measures. In addition, risk management helps us refine Alliander’s strategy. Alliander uses a single risk management method. This ensures that the risk management process takes place in accordance with the same steps everywhere in the organisation.
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.
Our most important current risks (click an item in the online report for an explanation)
- ACompletion of work package →
- BCapacity for change (new in 2019)
- CSafety →
- DLong-term regulatory focus →
- EPrivacy of energy data ↓
- FFuture-proof IT landscape (new in 2019)
- GCybersecurity →
- HFinanceability (new in 2019)
Completion of work package →
Capacity for change (new in 2019)
Long-term regulatory focus →
Privacy of energy data ↓
Future-proof IT landscape (new in 2019)
Financeability (new in 2019)
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. In 2019, Alliander’s strategic risks were recalibrated in a session with the Alliander management team. Risk management is also a permanent item on the agenda for the other executive and management layers within Alliander.
Alliander is committed to complying with the guidelines from the revised Corporate Governance Code. The Corporate governance, Statement by the Management Board and Other information chapters provide more information on how risk management has explicitly been embedded in the company’s governance and decision-making procedures. For more general information about risk management, go to www.alliander.com.
Connecting risks to strategic pillars
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 following provides details of each risk and how Alliander manages each of the risks listed, while also showing the development in each area over the past year in light of measures taken.
Financial risks, including our credit risk, are explained in note 34 to the financial statements.