Risk Management

...as a key tool of Group governance.

The AGRANA Group is exposed to a wide variety of internal and external risks. AGRANA’s Management Board is committed to fulfilling its responsibility for the early identification and mitigation of risks to the company’s viability as a going concern, it is supported in this by a risk management team.

The aim of risk management at AGRANA is to anticipate opportunities and risks and take suitable measures to minimise deviation from targets.

Risk policy
AGRANA’s risk culture is defined by risk-aware behaviour, clear assignment of responsibilities, independent risk control and the use of efficient monitoring and reporting systems.

Regulatory Risks
AGRANA is exposed to potential effects of international and national trade agreements and market policies especially in the sugar and starch segment. Common regulatory risks are:

  • Risks from the sugar regime
  • Renewable energy directive

Operational Risks
As a manufacturing company in the agricultural sector, AGRANA’s particular business activities expose it to the below mentionend specific operational risks that may have significant negative effects on its financial position and results of operations.

  • Procurement risks
  • Product quality and safety
  • Market risks and competitive risks

Legal Risks
The Group is exposed to the risk of possible changes in the legal setting, particularly in food and environmental legislation. AGRANA identifies such risks at an early stage, assesses their potential impact on the Group’s business activity and takes countermeasures where appropriate.

Financial Risks
AGRANA is subject to risks from movements in exchange rates, interest rates and product prices. To hedge these risks arising from operating and financing activities, AGRANA to a limited extent employs derivative financial instruments. AGRANA uses derivatives largely to hedge the following risks:

  • Interest rate risks
  • Currency risks
  • Product price risks
  • Liquidity risks
  • Risks of default on receivables

The natural upgrade.

  • Sugar.
  • Starch.
  • Fruit.