Active risk management, as it is understood and regularly applied in the voestalpine Group, serves to secure the company’s existence as a going concern in the long term as well as to increase its value and represents a significant success factor for the entire voestalpine Group. In the course of the systematic risk management process, which is run through several times a year and uniformly throughout the Group, and within the framework of internal control systems, which are also integral parts of the organizational and operational structure, significant risks are systematically recorded, analyzed, and evaluated at an early stage. Permanent risk monitoring ensures that appropriate risk-minimizing measures can be taken in a timely manner. In the interests of sustainable, responsible and value-oriented corporate management, risk management is an integral part of decision-making and business processes in all areas of the company and at all hierarchical levels, and also includes the responsible use of resources and the environment as well as compliance with regulatory requirements. Risk management extends to both the strategic and the operational level and is a key element for sustainable business success.
In the first half of the business year 2023/24, the Ukraine war and geopolitical developments continued to be monitored on an ongoing basis in order to counteract any possible effects on the voestalpine Group in the future as best as possible. For example, regular monitoring continues to focus on measures taken to secure the supply of relevant raw materials and energy to our production plants. The other operational risk environment of the voestalpine Group (such as failure of critical production facilities or failure of critical IT systems, decarbonization and CO2 issues, knowledge management, and risks in the financial area) remained virtually unchanged in the first six months of the current business year and also in comparison with the previous year. The main risk areas and their risk-minimizing measures, which are presented and described in detail in the Annual Report 2022/23 of the voestalpine Group (Annual Report 2022/23—“Report on the Company’s Risks” and “Impact of Climate and Energy Policy—Decarbonization Strategy”), thus remain valid as of the half-year management report.
Based on the findings from economic and financial crises in the past and their effects on the voestalpine Group and, in particular, from the Russian war of aggression on Ukraine and the COVID-19 pandemic, additional—primarily entrepreneurial—measures to minimize risks have been implemented in recent years, which are also described in detail in the Annual Report 2022/23 and have been and will continue to be consistently pursued in the current business year. In an economic environment that remains difficult, any consequences of global (trade) conflicts or geopolitical tensions will be continuously monitored on an ongoing basis.
Specific hedging measures have been developed and implemented for the risks identified in the past in the voestalpine Group. These measures are aimed at reducing the potential amount of damage and/or the probability of occurrence. It should be noted that, also as of the half-year management report, the operating risks of the voestalpine Group—apart from global crises and their effects—are limited and manageable from today’s perspective.