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Assessing and controlling risk is crucial to sustainable business success. u-blox employs strategies that effectively mitigate risk and prevent losses.
Risks |
Risk Mitigation |
Markets and customers Economic and market-trend uncertainties could impact our business and customer demand. This may lead to lower volumes and decreased profitability.
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Competition Our markets are highly competitive in terms of pricing, product features and service quality. In many sectors we face price pressures that could negatively impact our results.
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Intellectual property Competitors or other parties in our industry may seek to yield benefits from our technical innovations by duplicating our products.
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Product quality Poor product quality may result in reputational and brand damage, resulting in lower volumes and financial claims.
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Innovation u-blox's competitive position, sales and earnings depend significantly on the development of new products and technologies. Failure to achieve our aggressive R&D and innovation goals could negatively impact our ability to grow. |
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Personnel Skilled and dedicated employees are essential for the success of our growth- oriented corporate strategy. The loss of these individuals could disrupt the company’s operations.
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Suppliers u-blox outsources its capital-intensive production to leading production suppliers around the world. Rising raw material prices, capacity constraints or business interruption could lead to a shortage of supply with negative consequences for our business. |
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Compliance Non-compliant or unethical behavior could lead to reputational damage, fines and liability claims.
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Currency fluctuations The majority of u-blox's revenue material costs and R&D expenses are in US dollar currency. |
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Credit Credit risks arising from financial institutions and from customers could have a negative impact on u-blox's financial performance.
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Liquidity Failure in liquidity management may have a negative effect on u-blox's financial performance. |
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