The international aviation market, in which Icelandair operates, is both highly competitive and sensitive to a multitude of macro-economic, sector-specific, financial, and enterprise-related risks that can impact the Company’s operations and its ability to achieve its strategic objectives. Many of these risks are outside the Company’s sphere of influence.
The Board of Directors is responsible for determining the Company’s risk appetite and defining policy measures to reduce exposure to financial and operational risk to corresponding levels. These policy measures outline the parameters and framework that need to be considered when identifying and mitigating risk. The Audit Committee, on behalf of the Board, is accountable for reviewing and assessing the risk management and internal control processes. The Risk Management Committee, chaired by the CEO, endeavors to reduce risk exposure to the maximum feasible extent within the Board’s policy limits.
Financial risk is handled centrally for all companies within Icelandair while day-to-day operational risk is largely managed by directors and line managers at the division level. Relevant risk owners are obliged to monitor and manage risks proactively and to include relevant information in the planning, steering and control processes.
Additional risks and/or uncertainties that do not currently exist, are not presently considered material, or of which the Company is unaware, may also impair operations. The policy and measures are therefore reviewed, and modified as needed, on a regular basis.