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Vaisala’s risk map

Vaisala's business operations are subject to various risks which may have an adverse effect on the company. The list below is not complete but it explains some of the risks with their potential impacts and how Vaisala manages those risks today.

Strategic risks

Global lowering of price level and gradual loss of price premiumLower gross marginContinued focus on product leadership
Strive for outstanding customer experience and superior product quality
Cost reduction
Success of growth businesses not meeting targetsReduced return on investmentsStrong engagement with target industries
Frequent business follow-ups
New product market entry slower than plannedDelayed return on investment, cost overruns due to engineering of legacy productsPriority setting, resourcing, early piloting and concepting

Operational risks

Availability of IT systemsInterruptions to operations, especially manufacturingStabilization of operational IT environment, shortening of resolution time of critical incidents
Business continuity risks related to suppliersDelays in deliveries, and consequent loss of customersImprovement of supplier selection criteria, monitoring of suppliers' overall performance
Cyber risksInterrupts to operations or information services
Financial loss
Loss of trade secrets or personal data
Information security policy reinforcement
Personnel awareness training
Penetration testing
Change management performanceReduced revenue or profitability caused by failed or delayed investment, acquisition, divestment or restructuring projectsContinuous progress follow-up
Resource allocation for critical projects
Project delivery performance and interdependenciesUncertainty of revenue forecasting, lower profitabilityContinuous sales and delivery process follow-up and improvement
Political, legislative or regulatory changesLoss of market potential, or increased cost of accessing a marketGeographic and market diversity of business
Market and regulatory foresight

Hazard risks

Fire, contamination, or other major disruption in the clean room operationMajor impact on delivery capability both for Controlled Environment and Weather Business AreasEmergency stock of sensor components, risk based management of production equipment and spare parts
Field service health and safety risks related to working conditions and travel destinationsHarm to health or safety of personnelContinuous development of occupational health and safety system, emergency procedures
Failure of infrastructure supporting information service businessesReduced availability of information servicesGeographic system redundancy across four server sites
Natural disaster, epidemic, civil unrest, terrorism Impaired business environment leading to cancellation of orders, or delays in deliveries and revenue Geographic business diversity
Monitoring of the business environment
Risk assessment of business opportunities

Financial risks

Credit riskCredit lossSecured terms of payment, business credit checks, diversification of customer pool
Liquidity and refinancing riskUnavailability of credit facilitiesSustainable capital structure
Financial credit and interest rate riskFinancial credit loss, lower finance incomeHigh credit rating of financial counter parties, low risk cash investment
Currency riskLower net profit due to foreign exchange rate movementsCurrency hedging