Financial risk management

Through its activities, NCAB is exposed to a wide range of financial risks: market risk (currency risk, fair value interest rate risk and cash flow interest rate risk), credit risk and liquidity risk. The group’s overall risk management policy focuses on the unpredictability of financial markets and strives to minimise potential adverse effects on the group’s financial results. The Group does not apply hedge accounting.

Risk management is handled by a central finance department in accordance with policies adopted by the Board of Directors. The accounting function identifies, evaluates and hedges financial risks in close collaboration with the group’s operating units. The Board of Directors prepares written policies for the group’s general risk management as well as for specific areas, such as currency risk, interest rate risk, credit risk, the use of derivatives and non-derivative financial instruments, and the investment of excess liquidity.

In the annual report, NCAB describes in more detail the impact of the financial risks on its business.