The most important objective of risk management in Sampo Group is to maintain a balance between profits, risks and capital in each of the separate business areas.
Sampo Group companies operate in business areas where specific features of value creation are the pricing of risks and the active management of risk portfolios in addition to sound customer services. Successful management of underwriting risks and investment portfolio market risks is the main source of earnings for Sampo Group companies.
In Sampo Group the risks associated with business activities fall by definition into three main categories: strategic risks associated with external drivers affecting the business environment, reputational risk associated with the company’s business practices or associations and risks inherent in business operations.
A more detailed description of Sampo Group’s risk management activities, governance, risks and capitalization is available in the Risk Management section of the 2016 Annual Report.