Information, communication and reporting
We strive for an open communication culture and have various channels for communicating risk information both internally and externally. These channels enable our organization to provide relevant information for decision-making.
Risk management is an intrinsic part of doing business, so normal business discussions regularly address this topic. In addition, to ensure that specific risks receive sufficient attention, we have installed the following consultation and communication structures:
- Global Fraud Committee
- Global Issue Committee
- Cybersecurity Governance Board
- Ethics Board for People Data
- Human Rights Steering Committee
- Privacy Council
- Alert Committee
- Disclosure Committee
- Values Training Review Team
- Value Assurance Reviews
- Risk Management Committees in the various units
- Dedicated discussions with the Executive Committee on the Corporate Risk Assessment and the outcome of the Letter of Representation process
Letter of Representation
The Letter of Representation (LoR) is a biannual process whereby DSM’s units provide a comprehensive overview of incidents and risks to the Managing Board. The units report their identified short-term and emerging risks according to five categories: strategic, operational, financial, compliance, and reputational. The LoR also documents the mitigation actions defined in respect of these risks. A formal sign-off by each unit director is required. The output of the LoR process is discussed in the Executive Committee as well as the Audit Committee of the Supervisory Board. The material incidents are reported in the section What still went wrong in 2021.
Top and emerging risks
The output of the Corporate Risk Assessment process — being top risks and emerging risks — is discussed in the Audit Committee of the Supervisory Board and reported below.