Enterprise Risk Management
The purpose of Enterprise Risk Management (ERM) at Electrolux Professional is to proactively manage the portfolio of what leadership collectively believes are the most critical risks to the achievement of Electrolux Professional’s mission, strategy, and business objectives.
ERM objectives aim to:
– Promote an enterprise-wide approach by integrating risk management processes with business strategy, project
management processes, and decision making.
– Promote consistency and transparency in methodology, assessment, and management processes.
– Provide appropriate, consistent, and transparent ownership and accountability for risk mitigation.
The Electrolux Professional Group’s ERM process includes the following risk activities: context definition, risk assessment, risk treatment, monitoring and review, and communication and consultation of risks.
Electrolux Professional’s Board of Directors has the ultimate responsibility for risk oversight. The ERM governance structure is based on the three lines of defense model, which determines the roles, responsibilities, and relationships between risk management functions. The CEO, Executive Management, business, and Group functions form the first line of defense with ownership of risks, ensuring monitoring of risks, and the responsibility for risk treatment.
The role of the second line of defense, fulfilled by the ERM Board, is to provide risk management oversight, support, facilitation, and consultation. The ERM Board oversees and facilitates the Electrolux Professional Group’s ERM activities, ensuring that they are conducted in a holistic and proactive manner, to strengthen the development of integrated risk assessment processes, thus supporting the achievement of the Group’s strategic goals. The ERM Board consists of the President and Group CEO, the Group CFO, the Head of Legal, and the Group Risk Manager.
Internal audit is the third line of defense.