The risk policy’s main objective is to ensure that Orkuveita Reykjavíkur (OR) is able to perform its basic roles with the lowest possible risk. OR does this by:
- Reducing fluctuations in OR’s income with regards to underlying risks in operations and ensuring that risk factors are within the defined limits set by the Board of Directors (BoD) and listed in the risk manual. The diagram below specifies OR’s main risk factors.
- Ensuring that OR has sufficient liquidity to finance necessary infrastructure for services and regular activities.
- OR strives to ensure access to diverse funding from multiple financial institutions, avoiding dependence on few counterparties.
The BoD entrusts OR‘s Risk committee with the responsibility of complying to the risk policies objectives and keeping risk factors within limits set by the BoD. Changes to the limits require approval by the BoD. The risk policy builds upon OR’s values and overall policy and is set in accordance with the company’s owners policy.