Precautionary principle (4.11)

Vattenfall has established an enterprise risk management (ERM) process. The ERM process aims to create transparency and risk awareness and to support management in business decisions and in business planning within the Group. The ERM process is defined as a process applied in strategy setting across the company. This process is designed to identify and manage potential events and developments that may affect the achievement of objectives, according to the enterprise risk appetite.

The Chief Financial Officer (CFO) has overall responsibility for the Group’s financial activities and risk management, and ensures compliance with the Group’s policies and instructions in this area. A Group risk committee has been established to support the CFO in these issues. The risk committee is chaired by the CFO and is primarily tasked with ensuring qualitative risk management in the Group by, for example, approving risk management methods, ensuring standardised routines for risk management and risk reporting, and proposing mandates and limits. The Group also conducts an annual environmental risk evaluation. The results of this evaluation are presented to the Executive Group Management and to Vattenfall’s risk committee. Environmental risk management is co-ordinated with other risk management.

More information about Vattenfall’s risks and risk management is provided in Vattenfall’s 2008 Annual Report.