Risk management 2011
Yara’s total risk exposure is analyzed and evaluated at corporate level. Risk evaluations are integrated in all business activities, both at corporate and business unit level, increasing Yara’s ability to mitigate risk and take advantage of business opportunities.
Yara’s most significant market risk is related to the margin between nitrogen fertilizer prices and natural gas prices. Although there is a positive long term correlation between these prices, margins are influenced by the supply/demand balance for food relative to energy.
The Board carries out annual reviews of the company’s most important areas of exposure to risk and its internal control arrangements. Reference is made to pages 28–33 in the annual report for a more comprehensive description of Yara’s risk and risk management.