Adidas 2003 Annual Report Download - page 101

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INFORMATION TECHNOLOGY /// adidas-Salomon utilizes a
complex network of communications and IT applications in its
business activities. Therefore natural disaster, criminal
mischief or IT mismanagement could result in a severe
disruption of our business. We employ various methods to
mitigate these risks and prevent or minimize such disrup-
tions. These actions include, but are not limited to, the
utilization of hardware and software experts, firewall and
encryption technologies and business continuity planning.
Our wide area network (WAN) connections are set up in such
away as to prevent system-wide failure from a single distur-
bance and all our dial-up connections to the corporate
Intranet are encrypted.
PROPERTY /// adidas-Salomon products are manufactured,
shipped and stored all over the world. Physical damage to
premises, production units and warehouses can lead to
business interruption. These risks are mitigated by a variety
of loss prevention measures, which include working with
reliable suppliers and logistics providers who guarantee high
safety standards. adidas-Salomon also maintains sufficient
insurance cover to prevent financial loss in the event of such
damage.
SAFEGUARDING THE ONGOING BUSINESS /// Despite obvi-
ous business risks, adidas-Salomon is operationally and
financially strong, with sizable assets and liquidity. We are
constantly working to reduce and transfer risk as appropriate.
Based on the compilation of risks explained within this report
and the current business outlook, no immediate risks have
been identified which could jeopardize the Group’s ongoing
business health and viability. The Group’s equity capitalization
and earning power form a solid basis for our future business
development. We have taken appropriate precautions against
typical business risks that could negatively affect our financial
standing and profitability situation.
97
adidas SPORT PERFORMANCE ///
a3® TWIN STRIKE RUNNING SHOE