Given its socio-economic function and enterpreneurial business operations, Schiphol Group is exposed to strategic, operational, financial and compliance risks. A uniform policy has been developed for controlling these risks. Risk management is an integral part of our business operations.
Our risk management policy is based on the following philosophy:
- The Management Board and management are responsible for developing and testing risk management and internal control systems. These systems have been designed to identify significant risks, monitor the realisation of objectives and ensure compliance with relevant laws and regulations;
- Adequate risk management and internal control systems reduce the likelihood of errors, wrong decisions and surprises due to unforeseen circumstances;
- Risk management is integrated in the line management activities and planning and control cycle;
- A healthy business must take risks. The Management Board bears ultimate responsibility for determining the maximum acceptable level of risk (‘risk tolerance’).
The management has identified the risks that may affect the achievement of Schiphol Group’s objectives as thoroughly as possible. In a number of meetings of the Management Board and the Supervisory Board during 2012, the list of main risks was reassessed. On the basis of this reassessment, the management has reduced the list to ten main risks.
The developments during the global financial and economic crisis have made it clear that risks can occur simultaneously and can also be mutually reinforcing. Schiphol Group is attentive to this multiplier effect. Our risk management system is designed to reduce the adverse effects of the individual risks at an early stage.
Schiphol Group is, to a greater or lesser extent, dependent on what happens within and outside the aviation sector. By making these dependencies transparent, we gain better insight into the risks that are transferred within the chain. This enables us to anticipate chain reactions at an early stage.