Other risks

Operating risks
Operating risks means the risk of incurring losses due to deficient routines, insufficient control, and/or improper actions. Good internal checks and external checks by auditors, administrative systems that are appropriate for their purpose, competence development and access to reliable valuation models are methods to reduce the operating risks. In this connection, Klövern works continuously to monitor the company’s administrative security and control.

Personnel
Personnel risk is the risk of not being able to meet Klövern’s need of skilled personnel. The company works actively for internal career paths and internal training and also actively endeavours to maintain the company’s reputation as an attractive employer. The executive management has a period of notice of six months. Other personnel have a three-month period of notice if notice is given by the employee. This provides sufficient time for recruitment in the event of notice being given. During 2011, Klövern had a staff turnover of 8 per cent (10).

Sensitivity analysis
The sensitivity analysis is based on the Group’s earning capacity and balance sheet on 31 December 2011. The sensitivity analysis shows the effects on the Group’s profit before tax after full impact of each of the parameters in the table below. Interest-bearing liabilities and lease contracts extend over several years, which means that changes do not have full impact during a single year but only in a longer perspective.