Proactive Risk Management
Fennovoima's objective in risk management is to support the achievement of the project targets and prevent any negative effects by identifying risks as early as possible and by actively taking corrective and preventive measures.
The most significant financial risks related to the development and construction phase of the nuclear power plant are cost overrun and delay in the commissioning of the power plant. Fennovoima has hedged against these risks by setting up its own procurement to fixed-price contract models: the company has a fixed price, turnkey contract with the plant supplier regarding the Hanhikivi 1 nuclear power plant design and implementation. The plant supplier is also committed to acquire the necessary debt financing needed in the project.
The most significant risks related to the commissioning of the power plant are associated with the construction license application phase and the progress of the construction phase. Fennovoima is mitigating these risks by developing its procedures and its organization, as well as by assisting the plant supplier in the preparation of the licensing documentation.
As part of the supply chain risk management, Fennovoima has introduced supply chain assessment and approval procedures.