Risk management

Philips approaches risk management as a value-creating activity that complements our innovation and entrepreneurship. Philips’ risk management approach is an integral part of the Philips Operating model. The company’s risk management and control system makes management responsible for identifying the critical business risks and for the implementation of fit-for-purpose risk responses, however, there can be no absolute assurance that our risk management will avoid or mitigate all risks that Philips faces.

Philips defines risks in four main categories: Strategic, Operational, Compliance and Financial.  The visual below lists our material risks and how these relate to our plan for creating value with sustainable impact.

The risk overview may, however, not include all the risks that may ultimately affect Philips. Some risks not yet known to Philips, or currently believed not to be material, could ultimately have a major impact on Philips’ businesses, objectives, revenues, income, assets, liquidity, capital resources, reputation and/or ability to achieve its business and ESG objectives.