Risk management forms an integral part of doing business at Bang & Olufsen. At Bang & Olufsen, a risk is defined as an event or a development that could significantly reduce Bang & Olufsen’s ability to achieve the company’s financial targets, execute the company’s strategy or maintain the company’s license to operate.
The risk management system applied at Bang & Olufsen is designed to balance risk and reward throughout the company’s operations in alignment with the established risk appetite to generate maximum value to shareholders and other stakeholders.
By strongly focusing on enterprise risk management processes, the Executive Management Board and the Board of Directors can ensure that risk management forms an integral part of decision-making processes at Bang & Olufsen. The risk management process is constantly evolving, with Bang & Olufsen continuing to improve work on identifying, evaluating and monitoring relevant risks.
Relevant risks are identified, monitored and reported to the Board of Directors through an enterprise risk management process, which follows an annual schedule. Furthermore, risks identified are discussed by Executive Management Board several times during the year. The purpose of this process is to stay focused on current risks and to identify risks as early as possible, thereby enabling the Executive Management Board to take a proactive approach to adapting business processes and controls to meet, manage or mitigate such risks, or to prevent potential increases in the current level of exposure.
For further details, please refer to the Risk Management section of the Annual Report