Risk management in relation to SD
Latest international trends confirm that senior managements of leading international companies are increasingly more receptive to environmental/social issues and problems. The effects of climate change such as extreme weather fluctuations and natural disasters and the consequences of economic and political turmoil, particularly in less developed countries such as civil unrest, labor migration, decreases in purchasing power, directly affect the profitability of companies be it through rising costs or drops in revenues.
Companies are also more vulnerable to defamation than ever before. Therefore, risk management, which may have a significant impact not only on their businesses but also their reputations in the eyes of customers, business partners, investors, employees, local communities, regulatory authorities, etc., is gaining in importance. Thus, Slovnaft aims to take into account all these aspects of risk within a complex integrated system of risk management.