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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

  
RiskImpactManagement
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
​Customer budget cuts in developed countries and political unrest in developing economies
Reduced revenue​​Regional sales capabilities
Sales model for upgrades
Success of growth in information service businesses not meeting targetsReduced return on investmentsStrong engagement with target industries
Frequent business follow-ups
Efficient sales execution
New product introduction and/or entry to new markets slower than plannedDelayed return on investment, cost overruns due to engineering of legacy productsSales organization and channel development
Early product piloting and concepting
R&D support for production ramp-up

Operational risks

  
RiskImpactManagement
Availability of IT systemsInterruptions to operations, especially manufacturingStabilization of operational IT environment, shortening of resolution time of critical incidents
Change management process with impact analysis and formal approvals
Business continuity risks
related to suppliers
Delays in deliveries, and consequent loss of customersActive supplier risk assessment
Supplier base optimization
Long-term supplier development plans
Strategic supplier continuity audits
Cyber risksInterrupts to operations or information services
Financial loss
Loss of trade secrets or personal data
Information Security Management System (ISMS) creation and deployment
Cyber insurance
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 changes
Loss of market potential, or increased cost of accessing a marketGeographic and market diversity of business
Market and regulatory foresight
​Inventory risk
​Reduced profitability due to write-down
​Development of product ramp-down and material management and inventory processes

Hazard risks

  
RiskImpactManagement
Fire, contamination, or other major disruption in the clean room operationReduced revenue
Loss of customers
Emergency stock of sensor components, risk based management of production equipment and spare parts, safety of facilities
Business continuity planning
Field service health and safety risks related to working conditionsHarm to health or safety of personnelContinuous development of occupational health and safety system, emergency procedures
Traveler tracking system
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

  
RiskImpactManagement
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 risk
Financial 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