Operational risks

Operational risk is the risk of loss resulting from inadequate or failed processes, people or systems, or external events. It includes legal and regulatory risk which covers the risk of legal or regulatory sanctions, material financial losses arising from disputes unrelated to insurance claims or reputational damage resulting from non-compliance with applicable rules.

Risk management and control

Operational risks are identified and assessed through the risk and control self-assessment process. The business functions and corporate functions identify, assess, respond to, monitor and report operational risks periodically. Identified operational risks are assessed from a likelihood and impact perspective.

Systems are in place to support incident reporting and follow-up. Incident data is used to analyse operational risks and severe incidents are monitored to ensure appropriate action is taken.

More information regarding the most relevant operational risks in Sampo Group companies can be found in the respective Annual reports.