Risk Management
Active risk management plays a central role in NORDEN’s strategy to ensure stable earnings. The Company’s risk management efforts are aimed at minimising potential negative effects on earnings from commercial and financial activities and at limiting risks to acceptable levels.
It is NORDEN’s policy to assume material risks only in relation to the freight markets and related risks. Other risks are mitigated as far as possible either through diversification, guarantees or by hedging the exposure when future risks are known.
The framework and objectives governing NORDEN’s risk management are set out and approved annually by the Board of Directors. The framework covers commercial risks, financial risks and capital management risks. The Board of Management is responsible for identifying material risks and developing the Company’s risk management strategies. Exposures and the utilisation of the framework are reported to the Board of Directors on a monthly basis.