Page 46 - Loomis Annual Report 2017

42 Risk management Loomis Annual Report 2017
Risk management has
high priority at Loomis
Loomis’ operations involve taking over the customers’ risks associated with managing, transporting and storing cash, precious metals and valuables. This
is an important task with which Loomis is entrusted. Proactive risk management at all levels and in all aspects of the business is therefore essential for Loomis.
Loomis’ service lines, Cash in Transit, Cash Management Services and International are directly associated with a number of risks. In addition to the risk of personal injury, there is also the risk of the loss of cash and valuables due to criminality or failures in pro- cedures. Loomis has employed a systematic, comprehensive and continuous process for a number of years to ensure that risk is managed e ectively.
Risk management process
Loomis’ risk management is based on a well tried and tested pro- cess involving the systematic identi cation, classi cation, mana- gement and prevention of various types of risk in the Company’s operations.
Central management and local responsibility
Loomis has around 150 people working on operational risk mana- gement at the Group, regional and national levels. Risk manage- ment is controlled centrally from the Group level and all of the branches have common structures, processes and systems for their risk management work. Loomis is a decentralized organiza- tion in which the branches are responsible for their day-to-day operations. This includes control functions and operational re- sponsibility for risk management.
Reporting and follow-up
The task of identifying risks and ensuring that they are managed takes place at the national level based on guidelines from the Group. Plans are followed up systematically in each region and country. At regular global risk meetings the risk mitigation pro- cesses in the various countries are compared to best practices to make improvements and promote a strong risk management cul- ture. Loomis is also assisted on a regular basis by external security experts to further develop risk management processes within the Group.
New goals for a safer workplace
The safety of the employees is always the main focus of risk mana- gement. Employees who handle cash, precious metals and other valuables work according to strict security routines so as to mini- mize the risks to which they are exposed. Loomis is engaged in ex- tensive, proactive risk mitigation work. A focus on ethics and values, as well as well-de ned work routines are key aspects of the employees’ professional development. Continuously monitoring the external environment also enables Loomis to anticipate pos- sible incidents. This ensures a safer workplace for Loomis’ employees and greater security for the customers.
Employees at all levels must understand and be able to mana- ge the risks associated with their particular work. A focus on re- cruiting the right employees and providing good training pro- grams are other ways in which Loomis minimizes risk.
Define and follow up
Focus on risks and measures that are
effective and make a difference
Identifiy risks
Charting and classi cation
Risk assessment
Focus on risks and measures that are effective and make a difference
Risks are constantly monitored
Given the risk that cash handling involves, an assessment of risk and safety is an obvious aspect in every new assignment. In every contract, risk is weighed against pro tability. When an identi ed risk is accepted, it is monitored constantly because conditions can change over time.
Loomis has established tools and processes to identify, take action and monitor risks. Risks are evaluated based on two crite- ria: the likelihood that an event will occur and the severity of the consequences for the business if the event should occur.