LKAB is exposed to various types of risks that can have a significant impact on the Group's goal fulfillment in both the short and long term. Identifying and acting on risks and opportunities that affect LKAB's competitiveness is crucial if we're to deliver in accordance with our strategic priorities and create value for our stakeholders.
We’re operating in a capital-intensive industry with a planning horizon that extends over several decades. Like other companies in the industry, LKAB need to consider risks and opportunities that have a bearing on the business as it looks both today and decades from now. We also need to act to prepare for a transition to completely new external conditions. Competitiveness is a prerequisite to be able to invest in the future. The global climate threat means that the iron and steel industry needs to change fundamentally. This comes with great opportunities, but also risks, for LKAB.
An active groupwide risk management process creates transparency and awareness of the greatest risks, which contributes to a better base for priorities and decisions. LKAB’s work with identification and management of risks is coordinated with the strategy and business planning process and is decentralised in accordance with how the group is managed. The risks are divided into market risks and external risks, operational risks and financial risks.