Risks and uncertainties
Clas Ohlson’s operations entail risks that could have varying degrees of negative impact on the Group. These can be divided into operational risks and financial risks.
Operational and financial risks can have both a short and long-term impact on the ability to achieve set objectives in accordance with the company’s business plan. By being aware of the risks in the business, the risks can be controlled, limited and managed. Furthermore, when handled correctly, risks may lead to opportunities and add value to the business.
Operational and financial risks
Operational risks primarily comprise establishments in new markets, purchasing in Asia, IT systems, competition, logistics, strikes, key employees, social responsibility, product range and shrinkage, while financial risks mainly comprise economic conditions, wage inflation, raw-material prices, transport costs and exchange-rate exposure. The considerably stronger USD in recent times will impact our purchase prices in the future. For a more detailed description of risks, see the table below.