Foremost risks and uncertainty factors for society and Fingrid
1.1.10 Foremost risks and uncertainty factors for society and Fingrid
One of the company’s biggest business risks and the biggest risk where society is concerned is a major disturbance related to the functioning of the power system. A major disturbance or other electrical system disruption can cause significant financial and physical damage to Fingrid and society in general.
Other major risks for Fingrid and society are a loss of confidence in the electricity market, environmental risks and electricity and occupational health and safety risks.
The risks to Fingrid’s operations are risks related to the unfavourable trend in official regulation, capital investments which have become unnecessary, financing risks, personnel risks, risks related to ICT and data transfer, asset risks and reputation risks.
Risks to society arising from Fingrid’s operations are unsuccessful timing of capital investments and long-term restrictions in transmission capacity.
The most significant of the above-mentioned risks to Fingrid are explored in greater detail in the company’s annual report. Fingrid’s financing risks are described in more detail in sections 5.2 and 5.3 of the consolidated financial statements (IFRS). No substantial risks were realised in 2016.