Risk analysis.
Risk analysis.

Strong growth requires better risk management

November 7, 2023
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In the last couple of years, Geminor has experienced significant growth both in volumes, employees and turnover. "Secure financial frameworks and a focus on risk management are crucial elements in the further development of Geminor," says Chief Financial Officer, Edvin Aarak.

The job of securing waste fractions within both energy recovery and material recycling can be very complex in an international market. Naturally, good operational services, solid logistics expertise and a forward-leaning sales team are all necessary elements for succeeding in the waste management industry.

A role that is just as important, but perhaps somewhat less visible, is linked to the financial part of the operation: Without secure financial frameworks, it is difficult to become a leading player in this industry, says CFO of Geminor, Edvin Aarak.

"A multitude of different regulations and gradually stricter requirements regarding ESG are challenges that must be handled on a daily basis. A good example of how we are integrating ESG within our financial risk analyses, is through our double materiality analysis. Analyzing changes in our onboarding processes contributes to a more sustainable management of our supply chain", says Aarak.

The relevant authorities in European countries are demanding financial guarantees for waste transport. This means that Geminor is in need of close to 180 million Euro in guarantees at all times.

CFO at Geminor. Edvin Aarak.


International waste trading requires solid risk management in times of economic uncertainty in Europe, explains Aarak.

"We are currently signing more comprehensive agreements than ever with banking and insurance companies both in Norway and internationally, this so that we can provide guarantees in the bigger projects we are involved in. At the same time, we have to manage the financial risks that arise in the industry, such as credit and currency risks. In order to increase the volume and the number of projects, these bank and insurance company partnerships are essential in creating growth," says Edvin Aarak.

"With the current macroeconomic situation, where interest rates and exchange rates are fluctuating, we are forced to be more cautious than ever. In this respect, risk management is becoming increasingly important for this industry," explains Aarak.

Closer cooperation

Aarak believes that a closer cooperation between Geminor offices across Europe is a prerequisite for handling risk in the best way possible.  

"The ERP system that we introduced in 2021 is a joint solution that means that everyone in the financial team has access to the same data, regardless of which country they are responsible for. This simplifies and streamlines processes, and reduces the possibility of errors."

"A high level of knowledge about the market and projects, as well as current regulations, streams and prices, is important in becoming better at predicting risks. In addition, there is an increasing need to focus on transparency and ESG regarding both partners and customers. Hence, proactivity is a key word in the months ahead," concludes Chief Financial Officer, Edvin Aarak.