Risks and risk management

Hansel’s risks are particularly linked to framework agreement-based tendering and contractual management. Hansel reduces the risks connected with tendering by providing positive expertise in procurement legislation and by following the company’s tendering process. The company has internal guidelines in use as well as 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, even though the results of derivatives trading are charged to customers as such (see Notes 5.2).

Each framework supplier’s financial, technical and professional ability to provide the procured products or services is assessed during the tendering phase. 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.