Cramo has identified a number of potential risks that are associated with the ability to create value in the short and long term and that can prevent us from reaching our strategic targets. These include strategic and operative risks as well as risks related to financial markets, competition, compliance with laws and regulations, sustainability and the Group’s reputation. Once identified, the risks and their potential financial and non-financial impacts are analysed and evaluated, and the actions needed to mitigate the impacts are defined. The risks are managed through control activities that are set throughout the organisation.
Ensuring value creation ability
The most significant operative risks are related to strategic investments, the success of the Group’s acquisitions and information system projects, as well as the efficiency of operations. Risk mitigation related to personnel, occupational health and safety, the environment, and compliance with laws and regulations is also identified as being crucial to our value creation ability.
As a response to the megatrends affecting our industry and to ensure responsible business operations and growth, sustainability is deeply embedded in our strategic and operational decision-making as well as in our risk mitigation.
Cramo acknowledges the impact of local and global developments as possible risks
Economic uncertainty may be reflected in Cramo’s operations as decreased demand in one or more market areas, fiercer competition, lower rental prices, higher financial expenses, or customers experiencing financial difficulties and increasing credit losses. In addition, economic uncertainty increases the impairment risks to the balance sheet values.
Of geopolitical risks, global trade tensions and tariffs are creating uncertainties in the markets in which Cramo operates. The threat of an economic slowdown in Europe, European political fragmentation, including the Brexit outcome, and sovereign debt challenges in Italy may also influence general economic development and, consequently, construction and the demand for rental services.
Our risks and how we mitigate them