TomTom 2011 Annual Report Download - page 17

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15
Business Risks
Approach to risk management
—
Our Executive Committee together agree on the risk management
priorities for the group. Lead ownership for each risk is taken
on by an executive team member. The Business Assurance
department facilitates the annual assessment of business
risks, which results in an appropriate level of objectivity in the
assessment of risks. The business risk profi le is taken into account
when establishing our annual business plans and budgets.
Group risk profi le
—
Below is an overview of the business risks that we believe are
of most relevance to the achievement of our long-term goals
and strategy. This risk overview is not exhaustive and should
be considered in connection with forward-looking statements.
There may be risks, not yet known to us, which are currently
not deemed to be material, but which could later turn out to
have a signifi cant impact on our business.
Strategic risks
—
Changing competitive landscape
We operate in a highly dynamic and competitive industry.
Convergence in the technology, media, telecommunication and
automotive industries leads both to increased competition and
to new business opportunities.
Many of our current and potential future competitors are large,
well-known organisations with greater fi nancial, technical and
human resources than our group, and they may have greater
ability to fund product research and development and capitalise
on potential market opportunities.
Our group can be adversely a ected by a variety of business risks and economic
developments. We update our business risk profi le every year in order to manage our
most important risks. We do not quantify these risks or specify a list of the top fi ve
risks as we believe that the careful management of all these risks is important and that
singling out particular risks could be misleading to investors. The sequence of risks below
in no way refl ects an order of importance, vulnerability or materiality.