Strukton often operates in a situation where clients prefer to pass on risks in return for a fixed price. Strukton only accepts risks it can manage itself. Such risks can lead to losses and negative cash flows. For years Strukton has been using an advanced system for identifying and quantifying risks as part of its methodology for monitoring projects. It is applied in both the acquisition stage and the execution stage. This model enables the Group Management Board to determine the company’s risk profile on a regular basis. Strukton is reluctant to take on inflation risks at the moment in view of the potentially fluctuating prices for raw materials. A suitable indexation scheme is a key point for attention in long-running projects.
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Risk management and internal control.