TomTom can be adversely affected by a variety of business risks and economic developments. A structured risk management process helps management to better understand how risks might impact the company and to take appropriate risk mitigation initiatives. We update our business risk profile every year in order to manage our most important risks.
Below is an overview of our key business risks. The sequence of risks below does not reflect an order of importance, vulnerability or materiality. We believe that the careful management of all of these risks is important and that singling out particular risks could disrupt the balance of our risk management programme.
Approach to risk management
Senior management together agree on the risk management priorities for the group. A single owner is assigned responsibility for each risk, which helps ensure clear accountability for the mitigating actions. The Business Assurance department facilitates the annual assessment of business risks to achieve an appropriate level of objectivity in our assessment of risks. The business risk profile is taken into account when establishing our strategy, annual business plans and budgets.
Group risk profile
Below is an overview of the risks that we believe are most relevant to the achievement of our strategy. This overview is not exhaustive and should be considered in connection with forward-looking statements. There may be risks not yet known to us or which are currently not deemed to be material, which could later turn out to have a significant impact on our business and could have a material adverse effect on TomTom's financial condition, results of operations and liquidity.