Arcelik and Risk Management

Arcelik's risk management is described in its 2010 annual report. Here are some excerpts.

Arçelik SA employs a holistic approach to risk management. All strategic, operational, and financial risks to include any area of risk in achieving the company's short and long-term targets are assessed from the board level to all levels of the organization. Within this scope, a Risk Management Committee has been formed to advise and recommend to the Board of Directors in subjects including determination, evaluation and estimation of the impact and possibilities of all kinds of strategic, financial, operational, etc., risks that may influence the Company, managing and reporting such risks in accordance with the Company's corporate risk taking profile, considering the same in decision making mechanisms, and establishment and integration of effective internal control systems in this respect.

Risk management is an integral part of all business processes. In other words, managing risks is tantamount to managing business processes. Therefore, practices related to risk management are executed within the company to the extent possible rather than being outsourced to other companies or consultants. Therefore, one of the key tasks of process owners is to manage their related risks. According to the board of directors' assessments and decisions on strategic risks, the Risk Management Committee determines the procedures to be implemented and integrated with the business processes of the main risk groups.