Annual report 2012

Risk management

The Telekom Slovenije Group completed the strategic project to establish a comprehensive risk management system for the Group in 2012. The Group implemented its adopted risk management policy and updated its register of risks. To that end, the Group reassessed key risks, determined acceptable levels of risk and defined additional risk management measures. It also drafted the bases for defining key risk indicators. The Group actively monitored opportunities that it has identified primarily with respect to improving business processes and increasing focus on the customer. It strives to ensure that risk management is integrated into day-to-day business processes.

Highlights in 2012

  • Completion of the strategic project to establish a comprehensive risk management system for the Telekom Slovenije Group.
  • Regular updating of the register of recognised current and potential risks, and reporting. 
  • Inventory and assessment of risks at the Group level.
  • The assignment of risks to individual categories and the drafting of standard descriptions for every risk, and the development of a risk register that includes general data regarding risks, and data regarding assessments and measures. All information is constantly updated.
  • Strengthening of the culture of responsible risk assumption via workshops and by drafting a proposal regarding key risk indicators.
  • Additional proposed measures for managing all groups of known risks. 

Risk management system

The basis of the Telekom Slovenije Group’s risk management system is its risk management policy, which sets out basic guidelines for managing risks, including competences and responsibilities, and is a binding document for all Group companies. For the Group, risk means uncertainty regarding an undesirable event that may have a positive or negative impact on the achievement of objectives. Risk is, by nature, incorporated into all business processes and decisions.

The risk management system within the Group is coordinated by the Risk Management Department, which functions as part of Telekom Slovenije’s Finance Sector. The Risk Management Department reports on significant risks, is responsible for the development of methodologies and tools, and warns of potential risks to individual areas and in business functions. It also participates in the implementation of risk management processes and provides technical assistance. It works closely with the Internal Audit Service, which plans annual audits on the basis of the risk assessment and inventory. The Risk Committee, which is chaired by the competent member of the Management Board, plays an important role in guiding and coordinating risk management activities. In addition to its other tasks, the aforementioned committee advises and offers assistance in the integration of risk management into business processes.