Audited information

Under the Enterprise Risk Management Policy, based on the risk management standard of the Institute of Risk Managers, a tool is used to prepare risk assessments every year by Business Units, Service Units and Regions assessing threats and opportunities that will impact the objectives set for Clariant overall. These objectives are a result of the overall strategy of the Group as set by the Board of Directors and implemented by the .

The Executive Committee is responsible for monitoring the risk management assessments for relevance and consistency.

The objectives are set in the fourth quarter of the year. These objectives together with the threats and opportunities to them are subject to scrutiny by the Executive Committee during meetings with each Business Unit. Also reviewed and discussed are the measures proposed to maximize opportunities and reduce or contain threats. In that context, mitigation measures are defined and responsibilities are assigned.

All are required to report significant changes to existing identified risks and new threats and opportunities as they arise.

Risk registers are maintained using financial, operational, reputational impact and probability assessements to score and rank all identified risks. The assessments also address the measures in place to manage the risk identified with dates for completion of the measures. Effectiveness of the measures is also assessed.

When threats and opportunities have been identified and quantified, they are delegated to qualified individuals who are required to deliver effective risk management. Depending on the nature of the risks identified, specific skill sets may be required for the management of those particular risks. The assessments are shared between the stakeholders on a regular basis.

A consolidated risk assessment is submitted to the , the Audit Committee and the Board of Directors for review. In the case of new or changed risks, the reporting procedure is accelerated. Summaries of Business Units, Regions and Services risk assessments are shared with key managers.

To support functional responsibility, certain functions have access to risk assessments to assist them in their roles. Examples of such functions are Environmental Safety & Health Affairs (ESHA) to identify key sites for their property risk survey program, internal audit and group procurement.

Examples of identified risks included in the Risk Register:

2.1 – Regulation & Compliance: Environmental and product risks

Clariant is subject to many rules and regulations as well as standards. These include chemical industry, country, government and customer requirements as well as the European Union’s (EU) Regulations on Registration, Evaluation, Authorization and Restriction of Chemical substances (REACH). Corporate Product Stewardship is responsible for the management of this risk. Certain specific matters are delegated to Legal, ESHA and Logistics functions.

2.2 – Site and location

This includes manufacturing plants and equipment important for the production of Clariant products for sale to customers. Also addressed are country and culture issues that could create threats and opportunities to business objectives. The aim is to maintain high-quality production facilities. ESHA and Regional Services are responsible for the management of the associated risks.

2.3 – Economic development

The achievement of targets depends on the economic development, which is therefore continuously monitored in all markets. Should a market not develop in line with expectations, the organization will be adjusted accordingly.

Executive committee

Management body of joint stock companies; at Clariant the Executive Committee currently comprises four members. VIEW ENTIRE GLOSSARY


Stakeholders are people or groups whose interests are linked in various ways with those of a company. They include shareholders, business partners, employees, neighbors, and the community. VIEW ENTIRE GLOSSARY

Executive committee

Management body of joint stock companies; at Clariant the Executive Committee currently comprises four members. VIEW ENTIRE GLOSSARY


Compliance is a key element of Corporate Governance. It refers to compliance with the law and directives as well as with voluntary codes within the company. VIEW ENTIRE GLOSSARY