Clariant's Enterprise Risk Management process (ERM) assesses the financial, operational, and reputational impacts. Quantitative and qualitative risk criteria are used. Risk maps are completed by incorporating reputational and operational risk assessments into the overall assessment. Measures are reported and monitored until risks are closed. Annual assessments to the Board of Directors are based on threat to the business targets for the following years. Risk categories are Strategic, Operational, Financial, Legal & Regulatory, Human Capital and Technology. The Group Risk Manager is meeting the Management Committee of each Business Unit (BU), Service Unit, and Region at least once a year to review the risks profile and the respective mitigation measures. All risk taking units report their risk profile status to the Executive Committee (EC). The short term risks are reviewed by the EC within Quarterly Performance Reviews, while the long terms risks are discussed with EC during the annual strategy meeting.
Opportunities arise from financial savings (e.g. lower operational costs, energy savings, reduced transportation costs), product development and innovation. Clariant has a comprehensive sustainability program and a strong tool at hand to assess, manage and prioritize its product portfolio in regard of sustainability, to take advantage of opportunities that arise from the market, addressing solutions in the fields of e.g. environment protection and climate protection.