Eniro defines risk as the uncertainty of an event occurring that could affect the company’s ability to achieve its set business objectives within a given period of time. Risks are a natural part of all business activities and must be managed by the company in an effective manner.
Risk management aims to prevent risks from arising and to limit and prevent risks from adversely impacting operations.
Eniro conducts an annual risk assessment process, Enterprise Risk Management (ERM), which includes all parts of the business, including revenue streams as well as Group functions.
Eniro strives to effectively identify, assess and manage potential risks, which can be grouped into a number of areas, including sector and market risks, commercial risks, operational risks, financial risks, compliance risks and financial reporting risks.
Eniro’s risk exposure varies within the company’s reported revenue categories: Desktop search, Mobile search, Complementary digital marketing products, Print and Voice. In the risk assessment, the various risks are identified in a structured manner by analyzing a number of risk drivers per risk category. For each identified risk, an assessment is made to determine to what extent the risk should be monitored, eliminated, reduced, or increased, if this is judged to represent an opportunity.
The risk assessment serves as the basis for the annual work on Eniro’s business plan, where a number of risk management activities are planned as strategic or operational initiatives. The results of the risk assessment, including risk management activities, are reported to the company’s Audit Committee and Board of Directors for evaluation and approval.
For more information on risk factors and risk management, see the Annual Report 2015, pages 34-37.