Risk Management at Next Games coordinates and develops a systematic assessment of risks and opportunities within core business planning and decision-making processes. The company has defined a risk management policy that describes the objectives and principles, responsibilities and practices of risk management at Next Games.
The objective of Next Games’ risk management is to ensure and support the strategic direction of the company, profitable performance, shareholder value, implementation of responsible operating practices and continuity of operations. Next Games applies a business-oriented and comprehensive approach to risk assessment and management. This means that key risks are systematically identified, assessed, managed, monitored and reported as part of business operations in the company.
The following principles are applied to the Next Games’ risk management:
- Objectives are set taking business possibilities and risks into account
- Continuity of operations is maintained by safeguarding critical functions and the resources they require
- Information on risks and risk management is provided to stakeholders in accordance with Next Games’ corporate governance principles
- Opportunities for misconduct or any fraudulent activities are minimized
This risk management model is used in the identification and management of risks which threaten Next Games’ objectives. Risk identification is based on business objectives and opportunities and the defined risk appetite in order to limit excessive risk taking. Risks are prioritized on the basis of their significance by assessing the impact and likelihood of their materialization and the level of risk management actions.
The members of management are responsible for the execution of the Company’s risk management strategy. Every Next Games employee must know and manage the risks of his/her responsibility area. The Management team members guide and develop the company’s risk management and support operations in the execution of risk management and in risk reporting.
The Management Team regularly monitors the execution of risk management actions and reports to the Audit Committee and Board of Directors on the risks and the progress of risk management responses. The sufficiency and effectiveness of the responses are assessed as part of the monitoring of business operations. Any corrective actions are taken as necessary.
Risks and management responses are reported in accordance with Next Games’ reporting responsibilities. The Management Team reviews and updates risk reporting on a bi-annual basis, or on a quarterly basis, if needed. The risk map, the most significant risks and uncertainties, as well as material changes in and responses to them are reported to the Next Games Board of Directors.