ANNUAL REPORT 2017 Director-General's Statement
ANNUAL REPORT 2017 LFV is with you on the travel
ANNUAL REPORT 2017 This is LFV
ANNUAL REPORT 2017 The Year in Brief
ANNUAL REPORT 2017 Operating Environment and Marke
t
ANNUAL REPORT 2017 Strategy and Objectives
ANNUAL REPORT 2017 Customer Focus
ANNUAL REPORT 2017 Environment
ANNUAL REPORT 2017 Aviation Safety
ANNUAL REPORT 2017 Innovation
ANNUAL REPORT 2017 Cooperation and Partnerships
ANNUAL REPORT 2017 Employees
ANNUAL REPORT 2017 Board of Director's Report
ANNUAL REPORT 2017 Income Statement, Comments on t
he Income Statement
ANNUAL REPORT 2017 Balance Sheet
ANNUAL REPORT 2017 Comments on the balance sheet a
nd funds statements
ANNUAL REPORT 2017 Financing
ANNUAL REPORT 2017 Accounting and Valuation Princi
ples
ANNUAL REPORT 2017 Notes
ANNUAL REPORT 2017 Investments
ANNUAL REPORT 2017 Reporting in Accordance with Pe
rformance Plan
ANNUAL REPORT 2017 Reporting in Accordance with Ap
propriation Directions
ANNUAL REPORT 2017 Risk Management
RISK MANAGEMENT Area (perspective in business pla
n) Operations and delivery Risk Description Aviation safety LFV’s air traffic management is to be characterised by high aviation safety and efficiency. To maintain a high level of aviation safety and minimise the probability of aviation safety risk occurring, continuous aviation safety work is conducted at all levels within LFV. The probability of a serious aviation security incident to occur is deemed to be very low. LFV works concurrently with seven focus areas to work proactively on aviation safety risks, where, among others, ”midair collision” and ”runway incursion” are included. Resumed total defense LFV has been commissioned to resume the total defense. This Government commission makes great demands of the operations, regarding resources and financing. In addition, existing legislation limits the ability to achieve all measures. Security protection and information security The ongoing trend of digitalisation, in combination with a changed security policy situation have increased the risk for unauthorized data access and the need for protecting sensitive information. Management LFV works concurrently with seven focus areas to work proactively on aviation safety risks, where, among others, ”midair collision” and ”runway incursion” are included. Incidents within each focus area are analysed in 6-month intervals. Recommendations are made from these analyses, which later are followed-up. LFV has decided to invest in a primary radar facility which will contribute to an improved radar coverage over the southern Baltic Sea. A project for the total defense planning for LFV has commenced, and an action plan will be developed. A dialogue is held with the Ministry of Enterprise, Energy and Communications, regarding financing, and with the Swedish Transport Agency, regarding changes in regulations and legislation. LFV is working actively with Cyber Security and information security. During the year LFV has been working with improving routines, increasing the control of subcontractors, and clarified responsibilities. LFV will continue to work with technology improvements for increased resilience. A new management system for information security will be developed, to secure for sensitive information to be managed in the right manner. Courses will be held. Customer and sales Establishing on the international market Finances Performance plan (RP2 and RP3) Harsh competition, availability, and a lack of the right resources have contributed to LFV’s difficulties in establishing internationally. LFV is governed by a performance plan, which regulates en route and terminal charges, among other things. LFV has met the requirements, but in the coming performance plan (RP3), further requirements on lowered costs and charges are expected. The charging system is complex, and presumes calculations, interpretations, assessments, etc. where the risk for deviations is significant. An efficiency programme has been ongoing since 2014, and entailed savings of around 200 MSEK. The possibility of further savings is assessed to be very limited. According to the same regulatory framework, LFV needs to implement comprehensive systems, and functions, which require resources and will increase LFV’s costs. Exchange risk Exchange risk is defined as the effect on revenue a change in exchange rate will have on LFV’s revenue. The risk is limited through forward hedging and exchange options for known future flows. An interval controls that a certain share is secured within a certain period. Hedging of en route charge is carried out according to a special routine. Credit risk Credit risk is defined as the risk for the counterpart in a transaction not being able to fulfill the commitment. LFV has significant surplus liquidity, due to the pension liability held in trust. To limit the credit risk, there is regulation of counter-parties, instruments, duration, and allowed investment in LFV’s financial policy. Investments can be made in treasury bills, certificates of deposit in banks, supervised by FI, Sweden's financial supervisory authority, certificate from counter-parties wholly owned by the Swedish State, or with the credit rate K-1 and in bonds from counter-parties wholly owned by the Swedish State, or with a credit rate no lower than A (Standard & Poors scale), and A2 (Moody's Scale). Other risks Fraud and corruption All in all, LFV protection against fraud, corruption, bribery and other irregularities is assessed as good. LFV’s core operations are regulated and supervised by the Swedish Transport Agency. LFV’s organisational structure, procedural rules and delegation, regulations, instructions, processes, etc. are defined and documented. In addition, there are further documents and a digital staff handbook, contributing to clearly setting out the regulations and approach with regard to these matters. Current information about corruption, fraud, bribery and other irregularities is published via the intranet and communicated when new employees are taken on and when managers are trained. In 2018, further training initiatives will be carried out. LFV has conducted a number of screenings, surveys, and business cases, which make up the base for a revised strategy for the commercial operations. In collaboration with Naviair, LFV has developed a common model for influencing before RP3. The regulations should be simplified and consideration must be taken to the individual prerequisites of the air navigation services providers. Continuous dialogue is held, primarily with the Swedish Transport Agency, regarding the composition and interpretation of the regulatory framework. LFV has performed priorities in the short term. In the long term, LFV sees limited opportunities in carrying out further large efficiency measures. 60 LFV ANNUAL REPORT 2017
ANNUAL REPORT 2017 Dividend Proposal
ANNUAL REPORT 2017 Audit Report
ANNUAL REPORT 2017 Board of Directors
ANNUAL REPORT 2017 Group Management
ANNUAL REPORT 2017 Five Years at a Glance
ANNUAL REPORT 2017 Abbreviations and Explanations