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Risk analysis

All business operations involve risks. Bisnode works continuosly to identify, measure and manage risk. In cases in which events are beyond Bisnode’s control, the aim is to minimize the consequences. The risks top which the Bisnode Group are exposed are classified into three main categories: External-related risks, Operational risks, Financial risks.

External-related risks

Macroeconomics

Bisnode’s operations are influenced by a number of external factors whose effects can be control to a varying extent. Demand for the Group’s services and products is largely steered by economic development in the respective country. However, the Group’s external-related risks are reduced by maintaining a good geographical spread with sales in 17 countries, a large number of customers and a wide range of services and products.

Legislation

To a large extent, the information used by the Group comes from publicly accessible sources. As a result, the Group’s operations are influenced by the laws and regulations governing public sector information in each country. In 2003 the EU implemented the so-called PSI Directive aimed at increasing the availability of public sector information in the EU. The immediate effects of the directive are minor, but in a longer perspective are expected to increase accessibility to basic data and thereby drive the supply of and demand for business information in Europe. The Group’s assessment is that it is well positioned to use its experience from the Nordic markets, where such information has been easily accessible for several decades, in order to grow and capture market shares in the rest of Europe as access to information increases.

Competition

As technologial advances reduce the costs of procuring and delivering digital information, start-up costs and certain barriers to entry in Bisnode’s markets may be reduced, allowing for more market entrants and greater competition. To fend off competition from low cost players, Bisnode is working actively to develop a more sophisticated product range and to increase customer loyalty through integrated solutions where the information is made available directly in the customer’s business system when possible.

Operational risks

Product and technology development

The Bisnode Group’s long-term profitability depends on the Group’s ability to successfully develop and sell new products and services. Digital business information is delivered to customers using a number of delivery methods, including digtial media, the Internet and direct integration into our customers’ IT systems. If Bisnode fail to enhance the current delivery methods or develop new methods in response to changes in technology or customer preferences, or do not act quickly enough to enhance or develop new delivery methods, the customers may choose to receive digital business information from other providers.

Employees

The most important resource for Bisnode are the employees. In order to keep co-workers as well as recruit new talents Bisnode is actively working on offering competence development and competitive compensation terms for its employees.

Financial risks

Bisnode’s exposure to financial risk factors such as interest rate and foreign exchange risk is monitored and analysed regularly. Interest rate risk is managed through the use of derivative instruments to reduce exposure to interest rate movements. Foreign exchange risk is limited by raising part of the longterm borrowing in euro, the currency in which most of the Group’s sales are denominated.

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