|Risk ||Risk definition ||Risk mitigating actions |
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Change in media consumption
Industry transformation following trends in media consumption and technological development. The capacity of product and service development to assess changes in consumer behaviour or invest in the appropriate technological service solutions.
Business development driven by customer needs. Measures to promote digital business competitiveness. Sufficient investments and resources in research and development.
The development of print media
A significant drop in subscribers and readers, a permanent decline in advertising sales and a significant increase in distribution and delivery costs.
Maintaining and developing an interactive media-reader relationship, customer satisfaction surveys, Alma Media’s internal cooperation in content production, content sales, advertising sales, support functions and product development. Own distribution network, distribution partnerships and cooperation with publishers.
Group subscriptions of magazines
Changes in the group subscriptions of the major financial and technology-related magazines.
Customer satisfaction surveys and continuous service development based on the results, in cooperation with group subscribers.
Fluctuating economic cycles
Advertising represents a significant share of revenue and is sensitive to general economic cycles.
Service business development, continuous analysis and monitoring of the operating environment, preparedness to implement structural changes as necessary, active development of the existing business, diversification of revenue sources, geographic diversification of business.
Changes in legislation
Potential changes in legislation concerning information security, postal deliveries and taxation.
Internal training, monitoring legislation, building processes for legally required changes in the organisation.
Business operations involve country-specific risks relating to market development and economic growth. Geographic diversification and internationalisation help reduce the country-specific risk of the domestic market.
Ongoing market development analysis, monitoring and analysing Group- and country-specific risks.
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Disturbances of information technology and communications
Reliability of information networks.
Contingency plans, decentralised server solutions, cloud computing, ensuring sufficient competencies.
The risk of being targeted by information security attacks and data theft.
Contingency plans and risk management actions, ensuring sufficient competencies, insurance.
Disruption of printing operations
Disruption of printing operations due to an accident, mechanical fault or information system error.
Contingency and restoration plans, back-up arrangements, customer communication, preparedness for crisis communication.
Technological development and the demands of new technology increase the risk of obtaining and maintaining sufficient competencies.
HR strategy, creating commitment in key individuals, additional resource allocation and trainee programmes, employee well-being.
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The company is unable to renew maturing financing agreements.
Treasury policy, financing plan and agreements, sufficiently long maturity of loans, sufficient equity ratio.
The company is unable to cover its maturing obligations in the short term.
Treasury policy, financing limit agreements of sufficient size.
Interest and foreign exchange risks
A change in an interest rate or currency exchange rate causes a significant impact on the company’s profit or balance sheet position.
Treasury policy and the hedging principles defined therein.