Asc's Risk of Business

Due to the global nature of its activities, the Group is exposed to foreign exchange risk. Foreign exchange gains or losses arise from transactions as well as from assets and liabilities denominated in foreign currencies (mainly EUR, USD, SEK and GBP) if these are not the entity’s functional currency. Group Treasury is responsible for managing group-wide foreign exchange transaction risk on an ongoing basis. The Group may hedge expected future foreign currency cash flows by executing forward contracts. Where such forward contracts are linked to specific projected transactions and cash flows, the hedging is deemed to be effective and documented accordingly, with changes in the fair value of the cash flow hedges recognized in equity.

The gain or loss from ineffective cash flow hedges related to flow of goods is recorded in the income statement under cost of goods sold.

A quarterly report on pending law suits is submitted to the Audit Committee. As part of Business Risk and Opportunity Management (BROM), an updated risk map for the Group and the individual divisions is submitted to the Board of Directors on a semi-annual basis. The meetings of the Board of Directors and the Audit Committee are attended by the CEO and CFO as well as, whenever necessary, by other members of Management.

interest rate risk is currently not hedged. Financing and related interest are managed centrally by Group Treasury.

This risk is currently offset with cash surpluses

As a risk with high consequences, is the hacker, able to steal medical data, scandal.

Also hospitals or clinics in the emerging countries might be facing a lack of investment in HCIT which unables them to offer Ascom services. Ascom can only expand if the healthcare infrastructure is well enough developed.