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Risk analysis

Bisnode’s operations are affected by a number of external factors whose effects can be controlled to varying degrees.

Operating risks

Demand for the Group’s products and services is partly  dependent on economic development in the respective country. However, the Group’s operating risks are reduced through a good geographic spread of sales in 19 countries, a large number of customers and a wide offering of products and services.

The Group’s operations are influenced by the laws and regulations governing public sector information in each country. In 2003 the European Parliament and the Council issued a directive aimed at increasing the availability of public sector information in the EU, known as the PSI Directive 2003/98/EC. The directive was implemented on 1 July 2005 and is expected to increase accessibility to basic data and thereby drive the supply of and demand for business information in Europe. In Sweden’s case, however, the PSI Directive can lead to future limitations in the current principle of public access to official records and changes in closely related regulations.

Other operating risks such as supplier contracts, free-of-charge information, delivery obligations, technical development, person-dependency, etc., are continuously analysed and measures are taken to reduce the Group’s risk exposure when necessary.

Financial risks

Through its activities, the Group is exposed to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to hedge certain risk exposures.

Risk management is carried out by a central treasury department in the Group company Bisnode AB, under policies approved by the Board of Directors. The treasury department administers the Group’s central accounts and identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating
units.

For full risk analysis please read the Bisnode annual report 2007

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