Risk
Management

Risk Management

Akola Group companies operate in dynamic agricultural and food production markets, where change is rapid and the business environment demands constant vigilance. Responsible risk management is an integral part of our operations and a key foundation for long-term success, growth, and resilience.

We define risk management as a structured, consistent, and value-protection-oriented process that supports informed decision-making and ensures readiness for a changing business, economic, and regulatory environment, as well as the ability to meet financial obligations.

System Based on International Standards

Akola Group’s risk management system is built in line with international best practices and leading risk management standards – COSO ERM:2017 (Enterprise Risk Management Framework) and ISO 31000:2018 (Risk Management Guidelines). These standards emphasize:

• the link between risk and opportunity assessment and strategy, as well as long-term value creation,
• systematic identification, assessment, and monitoring of risks,
• decision-making that takes into account risk impact, likelihood, and risk tolerance,
• the importance of leadership and a strong risk management culture within the organization.

Risks are assessed comprehensively, incorporating both management’s perspective and input from business segments and operational teams. This enables a deeper understanding of the nature of risks, their potential impact, and the key directions for…

Three Lines Model

Risk management in the organization is based on the principles of the Three Lines Model, which help clearly define responsibilities and ensure the effectiveness of the system:

1. First line – Business units

Manage risks in day-to-day operations and apply control measures appropriate to their activities.

2. Second line – Risk management function

Develops risk assessment methodology, coordinates risk assessment processes, and provides expert insights for decision-making at the Group level.

3. Third line – Internal audit

Independently assesses the effectiveness of risk management and contributes to the improvement of internal control.

Sustainability Risk Management

Sustainability risks are integrated into the Group’s overall risk management system. A double materiality assessment helps identify impacts, risks, and opportunities related to environmental, social, and governance aspects, by evaluating factors that may have:

• a significant impact on people and the environment,
• an influence on the organization’s strategic resilience and long-term value creation.

The results of ESG risk assessments are incorporated into the consolidated risk map, and their management and monitoring are carried out to ensure timely response and informed decision-making.

Key risks and their mitigation measures are detailed in the Group’s annual report.