The Board’s work

Description of the Board’s work

The Board’s Rules of Procedure stipulate that five to eight regular meetings are to be held each year. In addition to the regular meetings, the Board is summoned to further meetings if the need arises.

The Rules of Procedure stipulate, among other things, that the following items must be included on the agenda once a year:

• The Group’s strategic plan;
• The Group’s total risk exposure;
• Safety and environmental concern in nuclear power;
• Review of strategic personnel issues within the Group, including competence succession;
•  Research and development activities within the Group.

In addition, at every meeting important business events since the previous meeting and the financing situation are reported. Investments are followed up and analysed by the Board three years after the Board’s decision to invest.

The Board also holds a number of board seminars each year. At these seminars the Board receives more detailed information about and discusses Vattenfall’s long-term development, strategy, competitive situation and risk management.

The Board adhered to the plan in the Rules of Procedure in 2009. In all, the Board met 17 times, including the statutory meeting. A quorum existed at all meetings. According to the Rules of Procedure, at least one meeting every year is to be held at another location than the head offices. In 2009, a meeting was held in Amsterdam, the Netherlands. This meeting was combined with at visit to the recently acquired Dutch operations.

Please follow the links for a compilation of the meetings and some of the more important items of business that were handled.

The Board’s risk management process

Vattenfall appointed a Chief Risk Officer (CRO) in 2009 to achieve a clearer division of responsibility and more effective risk management organisation within the Group. The CRO is responsible for this organisation at the Group level and reports to the Audit Committee.  

The CRO and risk organisation have overall responsibility for the Enterprise Risk Management process, involving support, development, compliance and reporting regarding all risk areas within the Group, as well as gathered market and credit risk reporting.  

The CRO is particularly responsible for drafting and proposing risk management routines and policies, including continuous improvements, and for the implementation, operation and execution of these routines and policies via the risk organisation.  

Operational risk management is regulated by Group instructions with special focus on risks associated with energy and commodity trading, and financial, insurance and credit risks. These instructions are approved by the CRO down to the business unit level. The Board decides on overall risk limits for the Group in all these areas. Operational risks are followed up and reported on a regular basis within the respective Business Groups. At each board meeting the Board is informed about the Group’s financial position, and any outstanding guarantees and risks are reported. The Board also holds an annual risk management seminar, which conducts a more thorough review of the Group’s financial and operational risks.  

For more detailed information about Vattenfall’s risks and risk management, see the annual report pages 75-81.

The Annual report 2009 (PDF 13 kB)

Evaluation of the Board’s and CEO’s work

The Board evaluates its own work and the CEO’s work once a year through a systematic and structured process in the aim of developing the Board’s work forms and effectiveness. This evaluation is headed by the Chairman and is reported to the Board. The most recent evaluation was presented at the board meeting on 10-11 December 2009.