Opportunity and risk report

Some of the risks shifted between the ‘low’, ‘medium’, and ‘high’ risk categories within the risk matrix during the reporting period. The changes in the risks from customer project business (previously ‘high’), IT and data security risks (previously ‘low’), and competition risks (previously ‘low’) were not due to a changed risk situation or new external influences. Rather, they were the result of adjustments and refinements to the internal measurement methods used to quantify risk. These methodological changes were made in order to bring risk measurement into line with current regulatory requirements, internal management needs, and new insights gained from risk monitoring. Full comparability with prior periods may therefore not be possible in some cases. Against this backdrop, and taking into account other legal risks such as potential legal violations including non-compliance in areas like anti-corruption, antitrust, and capital markets law, the probability of occurrence for legal risks is assessed as ‘medium’.

Given the ongoing geopolitical tensions, particularly between the USA and China, the likelihood of additional trade barriers has increased significantly in the KION Group’s opinion. Consequently, the external risks in the risk matrix have now been assigned a high probability of occurrence (but an unchanged gross risk level) due to the potential implementation of new or higher tariffs. Moreover, the risk of restrictions on access to critical commodities has increased. This risk forms part of procurement risk, although procurement risk overall continues to be categorized as ‘low’.

As things stand at present, there are no indications of any risks that could jeopardize the Company’s continuation as a going concern.

Risk matrix