Risk management

The objective of Vaisala’s risk management is to identify and manage material risks related to strategy implementation and business operations. Approved by the Board of Directors, the Vaisala Risk Management Policy encompasses strategic, operational, hazard,
and financial risks. The policy aims to ensure the safety of the company’s employees, operations, and products, as well as the continuity and compliance of business activities.

The Board of Directors defines and approves risk management principles and assesses the effectiveness of risk management. The Audit Committee reviews compliance with Risk Management Policy and processes.

Risk management is integrated into key business processes and operations by incorporating risk identification, assessment, management, and risk reporting actions into the core processes. The most material risks are considered by the Vaisala Leadership Team per processes regularly during the year and also reviewed by the Audit Committee on a regular basis.

Near-term risks and uncertainties

Changes in geopolitical situation, interest rates and inflationary environment may affect industrial investments and economic situation and increase risk of achieving Vaisala’s financial targets. Possible tariffs and trade war between the US and Europe may have an impact on Vaisala’s financial performance.

Industrial actions in Finland may cause disruptions in Vaisala’s operations and deteriorate Vaisala’s delivery capability. Vaisala’s delivery capability may deteriorate due to disruptions in suppliers’ operations, Vaisala’s production or project delivery operation, or disruptions in incoming and/or outgoing logistics. Temporary component shortage may cause delays or interruptions in deliveries or generate additional material costs. Cyber risk and long disruptions in IT systems may impact operations and delivery capability.

Vaisala’s capability to successfully complete investments, acquisitions, divestments and restructurings on a timely basis and to achieve related financial and operational targets includes uncertainties and risks, which may negatively impact net sales and profitability.

New and changing regulations impacting product acceptance, operation’s capability to meet changing compliance requirements, and changes in international trade policies may cause delays or interruptions in supply chain. Customers’ preference for local manufacturing may reduce demand for Vaisala’s products and services. Customers’ budgetary constraints, complex decision-making processes, and missing financing solutions may postpone closing of infrastructure contracts in Weather and Environment business area.

Financial Statement Release January-December 2024, February 18, 2025

Risk map

Various risks may have an adverse effect on Vaisala’s business operations. The list below explains some of the risks with their potential impacts and how Vaisala manages those risks. Risk likelihoods and impacts are estimates, provided by a small group of subject area experts. No quantitative methods have been applied to assess either likelihoods or impacts.

Annual Report 2024

Vaisala as an investment

Vaisala is a global leader in measurement instruments and intelligence for climate action. We equip our customers with devices and data to improve resource efficiency, drive energy transition, and care for the safety and well-being of people and societies worldwide.