Philips believes risk management is a value-creating activity that complements our innovation and entrepreneurship. Philips’ risk management approach is an integral part of the Philips Business System (PBS), our standard operating model. The company’s risk management is designed to provide reasonable assurance that strategic and operational objectives are met, legal requirements are complied with, and the integrity of the company’s financial reporting and related disclosures is safeguarded. It 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’ risk management focuses on the following risk categories: Strategic, Operational, Compliance and Financial risks.
The risk overview below highlights the main risks known to Philips, which could hinder it in achieving its strategic and financial business objectives. 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 or capital resources.