Risks

Risk management

The Board of Directors of Oriola approves the company’s Risk Management Policy in which the risk management operating model, principles, responsibilities and reporting are specified. The Board assesses the Company’s long-term strategic risks and oversees the effectiveness of the risk management. The Board-appointed Audit Committee regularly reviews and monitors the implementation of the Risk Management Policy in the Group and the risk management process.

Oriola has specified the company’s risk management model, principles, organisation and process in the Group Risk Management Policy. The Group Risk Management Policy defines the enterprise risk management system, objectives, roles and responsibilities within Oriola in order to identify and manage risks related to execution of the company’s strategy and operations. The Group Risk Management Policy is the main risk management document within Oriola and must be followed by all Oriola business units, subsidiaries and entities. 

Additionally, the Group has e.g. a Code of Conduct, a Treasury Policy and an Approval Policy covering compliance and financial risks. Risk assessment and management are key elements in the strategic planning, operations and daily decision making in the company.

Risk review

Key external factors/trends impacting Oriola’s business environment continue to include ageing of the population, increased spending on health and wellbeing, growth in speciality pharmaceuticals, the digitalisation of the retail trade and services, increasing sustainability requirements as well as ongoing global health challenges. During 2024–2025, these trends have continued to affect demand patterns, particularly for high-value pharmaceuticals and products requiring advanced logistics.

Strategic and financial risks

Oriola’s risk management framework updated in 2024, was further implemented and embedded during 2025 to reflect the current business and regulatory environment and to support strategic planning and operational decision making. The Group’s risk management policy outlines the principles, processes and organisation designed to identify, measure and manage risks impacting operations and strategic goals. The Group’s risk management seeks to identify, measure and manage risks and opportunities that may have an adverse or beneficial impact on Oriola’s operations and strategic goals, with increased focus on prioritisation and mitigation actions during 2025.

Oriola’s risk appetite reflects a balanced approach to taking well-considered risks while maintaining strong financial stability and operational continuity. Oriola’s risk management principles emphasise proportionality, reasonableness, and disaster avoidance, ensuring that risks are managed effectively and in alignment with our long-term strategic goals.

Oriola also adheres to a Code of Conduct policy and a Treasury policy covering compliance and financial risks, supported by established governance structures and internal control systems. The internal control and risk management systems related to Oriola’s financial reporting are aimed at ensuring the reliability of the company’s financial statements and financial reporting, as well as the company’s compliance with legislation and generally approved operating principles.

Oriola continuously monitors changes in the risk landscape and adjusts the company’s risk and opportunity exposure in response to shifts in the market, society, and geopolitical environment.

Changes in the pharmaceutical market regulation and related licences, pricing, parallel import and public reimbursement are examples of strategic and operational risks that may impact the performance of the group. The competitive landscape continues to evolve and for example changes in distribution models and the loss or renegotiation of key pharmaceutical company agreements may affect the Group’s performance.

Regulatory and market risks

Oriola operates in regulated pharmaceutical distribution and retail markets closely monitored by authorities in its operating countries. Regulatory changes and compliance requirements may affect operating conditions, cost levels and service availability.

Finland’s reform of social and healthcare (Sote), continues to shape the healthcare operating environment through wellbeing services counties.

Oriola assesses ESG-related (Environment, Social and Governance) risks and opportunities as part of the regular risk management process. ESG-related impacts, risks and opportunities are presentedin Oriola’s Sustainability Statement.

The main financial risks for Oriola involve currency rate, liquidity, interest rate and credit risks. Changes in the value of the Swedish krona have an impact on Oriola’s net sales, earnings and consolidated statement of financial position. Changes in cash flow
forecasts may cause impairment of goodwill. More information about financial risk management can be found in note 8.3. in the notes to the Consolidated Financial Statements.