Risks and risk management

Hansel’s risks are particularly linked to tendering related to framework agreements and to contractual management. Hansel reduces risks related to tendering by ensuring good knowledge of procurement legislation and by following the company’s tendering process. The company employs internal guidelines and a quality assurance system for competitive tendering. A special risk connected with the state’s electricity framework agreement applies to the state’s electrical derivatives, which are in Hansel’s name (see Notes 5.2), even though the results of derivatives trading are charged to customers as such.

Each framework supplier’s financial, technical, and professional ability to provide the procured products or services is assessed during the tendering stage. Contract suppliers are monitored throughout the contract period. In cooperation with a risk management expert, Hansel regularly conducts major risk identification projects, the results of which are presented in more detail in the corporate responsibility report.