Risk management process
To prevent risks or mitigate their effects and loss, Axfood works with an established enterprise risk management process, where risks are continuously identified, managed and reported. All risks are assessed based on likelihood and consequence. Operational and strategic risks include sustainability risks.
Risk management process
Risks are assessed and documented by the respective risk owners at least twice a year as well as on a continuing basis where necessary. The risk owners are the members of the Executive Committee, who are responsible for their respective areas. An assessment is made of the changed level of existing risks as well as of potential new risks. Strategic risks related to, for example, the market and competition, purchasing and assortment, and other changes in the external business environment that can affect Axfood’s strategic targets, are managed as part of the continuing work of the Board of Directors and Executive Committee.
Risks are classified and categorised according to how well countermeasures are implemented. Axfood has a Risk Committee, which is headed by the Group’s Risk Manager. The Risk Committee is tasked with, among other things, following planned countermeasures and consolidating the risks identified by the respective risk owners. A compilation is made centrally and coincides with the timing of the Group’s work with the business plan, which facilitates budgeting for decided countermeasures. For a description of the organisation, governance and reporting of risk management, see the illustration to the right. City Gross, which was acquired on 1 November 2024, was integrated into the Group’s risk management process in 2025.
Incident management
Incident reporting systems are in place in Axfood. Through these systems, a compilation is made that provides documentation for determining how operational risks are to be prioritised and managed effectively and systematically..
Crisis management, business continuity and preparedness
All of the Group companies’ crisis management teams carry out crisis management practice drills. The aim is to ensure preparedness for a crisis and that the right actions are taken at the right time by the designated key functions. The purpose is to minimise acute damage in a situation in which normal procedures are insufficient. In 2025, further preparedness and continuity work was conducted. A baseline assessment of critical processes was carried out with the aim of ensuring greater robustness. The Group also expanded its cooperation with authorities and industry stakeholders on the issue of preparedness..
Insurance
Axfood has Group-wide insurance that is reviewed yearly by an independent, external party. The insurances cover, among other things, property, business interruption, product liability, cyberattacks, transports, and director and senior executive liability.
All of the Group’s insurance policies are renewed before expiration. To reduce the Group’s insurance costs, starting in October 2025 Axfood established its own insurance company, Axfood Försäkrings AB, which provides property and business interruption coverage for Group-owned stores in Willys, Hemköp, Snabbgross and Eurocash. The company operates according to a captive arrangement, providing reinsurance up to a total claim amount of SEK 125 m per year.
