Under the explicit understanding that this is not an exhaustive list, the major risk factors that may prevent full achievement of our strategic ambitions are listed in detail in this section. There may be current risks that the company has not fully assessed, or that are currently identified as not having a significant impact on the business, but which could at a later stage develop a material impact. The company’s risk management systems endeavor to ensure the timely discovery of such incidents.
An overview of our major risk factors follows. The five risks that we currently assess as the most significant for the forthcoming five years are indicated.
We have identified major risk factors that may prevent full achievement of our strategic ambitions. These are explained in more detail over the following pages, with the top five risks highlighted.
Major risk factors assessed by AkzoNobel | ||||
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Internal |
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External | ||
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Strategic |
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Strategic | ||
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Identification of major transforming technologies |
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Worsening of economic conditions |
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Implementation of strategic agenda |
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International operations |
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Ensuring stakeholder support |
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Operational |
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Operational | ||
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Attraction and retention of talent |
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Sourcing of raw materials |
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Management of change |
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Energy pricing and emission trading rights |
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Production process risks |
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Product liability |
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Environmental liabilities |
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Financial |
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Financial | ||
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Cash flow |
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Contribution to pension funds |
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Decline of asset values |
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Fluctuations in exchange rates |
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Compliance |
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Compliance | ||
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Complying with laws and regulations |
