A company is only as sustainable as its ability to withstand events that challenge its prosperity, so risk management is an important element of sustainability.

PotashCorp has adopted a risk management framework that identifies potential events which could have adverse effects. These risk events are managed to provide reasonable assurance that they will not prevent the company from achieving its goals and objectives. Risks are assessed by identifying, measuring and prioritizing them, based on their estimated likelihood and severity of loss.

Six major categories of risk have been identified: markets/business, distribution, operational, financial/information technology, regulatory and integrity/empowerment. Together or separately, these could threaten the company's strategies and affect its ability to take advantage of opportunities to maximize stakeholder returns.

Management reports annually to the board on the risks the company faces, the response options and how risks are being managed.

Each year, management re-evaluates risks identified in previous years, as well as the potential for new risks. It then identifies the most significant new or elevated risks to company strategy resulting from changes in operations or external factors.