Kotipizza Group complies with the risk management and internal control policies approved by the Board of Directors.
- The CEO and Management Group members evaluate business risks at the same time with the strategy process and annual planning
- The business units’ operative management produce risk assessments on their own activities and submit action plans on managing the risks, which will be compiled
- Changes in the strategic and operational risks are dealt within the Management Group, and the vital changes are taken to the Board of Directors for consideration.
The controls of accounting and financial reporting are explained in
- Finance Department’s guidelines and regulations as regards to outsourcing, partner Accountor Ltd’s internal guidelines and regulations.
- The centralized financial department of the parent company deals with financial risk management in accordance with the principles approved by the Board of Directors.
- The principles of the overall risk management; practices in specific areas such as interest rate risk, use of derivative instruments, the placement of excess liquidity
KEY RISKS RECOGNIZED BY THE BOARD OF DIRECTORS
- Kotipizza Group may fail to create or introduce to the market new chains and concepts that are attractive to consumers.
- Changes in the regulatory framework, particularly when related to food regulations, and variation in its interpretation may have an adverse effect on the Company’s business.
- Kotipizza Group is dependent on competent management and key personnel.
- The Kotipizza Group and its subsidiaries may fail in brand or reputation management, and negative publicity for any fast food restaurants owned by Kotipizza or Chalupa or operated under their franchising concept or Foodstock’s wholesale business may have an adverse effect on the business of fast food restaurants owned by Kotipizza Group or operated under its franchising concept.
- Disruptions in raw material supply due to low availability, production disturbances or exceptional natural conditions may have an adverse effect on the availability of high-quality and competitively priced raw materials that comply with environmental requirements.
- Failure in the efficient management of Foodstock’s supply chain may result in excessive inventory levels or delays in product deliveries.
- Kotipizza Group faces risks relating to its joint ventures.
- A decrease in customer purchases or loss of any key customers may have an adverse effect on Kotipizza Group’s business.
- The Company may be required to recognize write-downs related to goodwill in the future.
- Kotipizza Group’s pro forma information does not necessarily reflect the Kotipizza Group’s historical financial position.
- Weak general economic development in Finland and a weak situation in the Finnish and global economy may have an adverse effect on the Company’s business and results of operations.
- Changes in the competitive environment and other risks related to competition in the Company’s sector may have an adverse effect on Kotipizza Group’s business.
- The Company’s indebtedness and interest rate risk may have an adverse effect on its business and financial position.
- The counterparty and credit risk, if realized, may have an adverse effect on the Company’s results of operations and financial position.
- Exchange rate fluctuation may have an adverse effect on Kotipizza Group’s business and results of operations.
- Realization of tax risks may have a material adverse effect on Kotipizza Group’s results of operations and financial position.
- Inter-dependency of the companies within Kotipizza Group may have a material adverse effect on Kotipizza Group’s financial position.