Risk Management
Risk management is a fundamental factor for all companies working with cash handling services. Managing cash in communities with criminal elements is associated with sizeable risks for personnel as well as property. Therefore, quality risk management is Loomis’ most critical success factor.
Loomis has developed a deep understanding of the risks to which our business is exposed. Knowledge of these risks is the basis for determining which business risks should be completely avoided and which can be managed successfully. Loomis’ employees play a decisive role in controlling and reporting the risks the company decides to accept.
Risk Management strategy
Loomis bases its risk management strategy on fundamental principles that are easy for all employees to understand:
- No loss of life
- Balance between risk and profit
The strategy is designed to plot strengths to build on, weaknesses that must be dealt with, and possibilities and threats that require action. It also takes into account changes that could occur in Loomis’ business environment, such as new technology or changes in legal circumstances.
Each assignment is assessed on criteria such as profitability and security, where the business opportunities must consider possible risks. Even when a risk is accepted it must be controlled on a daily basis as the world is constantly changing.
All work processes are mapped and each risk associated with a specific process is identified and defined in a comprehensive Risk Register
Risk Management organization
At Loomis, more than 150 professionals work with risk management on the Group or country level and have general as well as specialized expertise. Risk Management personnel work in areas such as guidelines and procedures, customer contract risks, crime prevention, recruitment, training, security equipment purchasing, insurance, control of security and flow of cash, investigations, and contact with legislative bodies and agencies that uphold the laws. We regularly invest significant amounts in security improvements. One example is a shift to sealed systems in Sweden where money is now always transported in containers with dye vials that destroy the bills if they are stolen.
Daily risk control
Loomis measures, reports and controls the financial and operational risks on a daily basis. The controls are made by separate offices. Loomis’ executive management is ultimately responsible for satisfactorily managing the company’s risks. In addition our overall handling of risks of an extensive security net is strengthened.
Loomis’ control environment
This figure shows how Loomis’ risk control is organized. Loomis measures, reports and controls risks on four different levels in the organization. The control is managed by separate offices for financial control and operational risk management. The internal controls are assessed by the risk and audit committee which reports to the Board of Directors.