Risk Management

Yara’s risk management system aims to reveal and manage financial and non-financial risk, such as the majority of the sustainability risks associated with global challenges, health and safety, legislative changes or misuse of Yara’s products.

Risk assessments

Risks are identified and managed in a number of ways. Yara’s business segment leaders conduct annual workshops to identify new risks and appropriate actions to handle these risks in their respective segments. Yara’s executive management performs a separate risk evaluation based on a top-down approach. Yara’s Internal Audit assists management by bringing a systematic approach to evaluating and improving the effectiveness of risk management, control and governance processes.

Sustainability risks

In 2007, Yara undertook a thorough review of the material sustainability issues facing the company and its industry. In accordance with Yara’s overall risk management system, risks related to the company’s corporate citizenship are categorized as strategic, operational, compliance or financial risks (see table above). Strategic risks arising from global challenges often represent business opportunities for Yara as the company responds to these risks with contributions to sustainable agriculture and business development. Yara’s HESQ and Product Stewardship Team continuously monitor Yara’s significant operational and compliance risks.