Reebok 2015 Annual Report Download - page 166

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162
3
GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Risk and Opportunity Report – Illustration of Material Risks
ILLUSTRATION OF MATERIAL RISKS
This report includes an explanation of what we perceive as material risks to the achievement of the Group’s
objectives in 2016. As we adjusted the definition of materiality compared to 2015, material risks are now all
net risks classified as significant or major. Besides these material risks, we also report macroeconomic,
sociopolitical and regulatory risks as well as credit risks, interest rate risks, and financing and liquidity
risks. The corporate risks overview table shows the assessment of all risks described below.
see Table 03
03CORPORATE RISKS OVERVIEW
Potential
impact
Change
(2014 rating)
Likelihood Change
(2014 rating)
Strategic Risks
Risks related to organisational structure and change Major (Significant) Possible (Likely)
Risks related to distribution strategy Significant Likely
Competition risks Significant Possible (Likely)
Risks related to media and stakeholder activities Significant Possible (Likely)
Macroeconomic, sociopolitical and regulatory risks Major Unlikely (Possible)
Operational Risks
Personnel risks Major Possible
Business partner risks Significant (Major) Possible
IT risks Significant (Major) Possible (Unlikely)
Inventory risks Significant Possible (Likely)
Legal & Compliance Risks
Risks related to customs and tax regulations Significant (Major) Likely (Unlikely)
Financial Risks
Currency risks Major Likely
Risks related to impairment of goodwill/other intangible assets Major Likely (Possible)
Credit risks Major Unlikely
Interest rate risks Minor Likely
Financing and liquidity risks Marginal (Minor) Likely (Unlikely)