Metsähallitus 2016

Risk Management

In Metsähallitus, risks are managed using a systematic risk management process. The aim is to ensure the achievement of set targets, the fulfilment of legal obligations and operational continuity.

Mode of operation

Risks are divided into strategic, operational and economic risks, and the risk of damage. Metsähallitus has a moderate stance on risk-taking. The significance of risks is assessed as a combination of the probability and impact of any given incident, and risks are managed where they arise. Managers of profit units and subsidiaries are responsible for risk management within their unit or company. The chief financial officer is in charge of the risk management process and control of risk management. The head of risk management at Metsähallitus is in charge of the coordination, development, guidance and reporting models associated with risk management, as well as supporting risk management within the organisation.

Metsähallitus' Board of Directors approves the risk management policy and assesses the need to amend the policy on an annual basis. Each year, the Board of Directors receives a progress report on Metsähallitus’ risks and their management. The Managing Director bears overall responsibility for risk management.

Key risks

Key risks in terms of achieving Metsähallitus' goals include the development of timber and property prices and sales; the quantity and value of land areas in commercial forestry remaining at the level required by the goals set, and the balance of tasks and funding of Parks & Wildlife Finland.

Further risks that may affect operational activities include natural conditions and uncertainties in the operation of information systems. Effectiveness in developing new products and services and maintaining a good reputation influence the attainment of objectives. General appreciation of Metsähallitus' activities has an impact on the operating conditions for recreational activities, conservation efforts and forestry. The success of development projects in progress has an effect on the attainment of objectives.

The completion of the Act on Metsähallitus in 2016 eliminated much of the uncertainty that had affected the organisation’s activities. In the main, risk management was successful during the period under review, but a few obvious areas in need of improvement emerged. These related to issues such as maintaining the competencies of staff and ensuring the operations of the ICT environment. Furthermore, several attempts at online scams were targeted at Metsähallitus during the year.

Photo: Jari Salonen