Risk management
All businesses, including Alligos, are associated with risks. Properly managed risks can lead to opportunities and value creation, while risks that are managed incorrectly can lead to damages and losses.
The purpose of the Group’s risk management is to prevent and mitigate these risks in a way that creates value.
Risks
Alligo has chosen to group the risks into 3 areas.
-
Strategic risks
Strategic risks are associated with the industries and geographic markets in which Alligo operates and are usually external factors such as:
- Market development
- Competitive situation
- Sustainability and circular approach
- Climate-related risks
-
Operational risks
Operational risks are risks that Alligo can itself largely manage and prevent, and which mainly relates to:
- Risks relating to sales and gross margin
- Product risks
- IT risks
- Risks in the flow of goods
-
Financial risks
Financial risks are linked to the types of financial transactions in which the Group is involved, as for example:
- Raw material prices
- Exchange rate fluctuations
- Interest rate fluctuations
- Financing risk