The most significant individual risks or risk clusters have been named in the report above, with business- and market-related risks being the most significant alongside IT and legal risks. Most notably, the still ongoing Covid-19 pandemic and global macroeconomic and geo-political developments increase existing risks related to more restrictive regulatory requirements regarding drug pricing and reimbursement, the demand for our products, business interruptions at our production sites, lack of availability of good quality materials or services, and risks related to research and development.
Following the risk mitigation measures taken – such as the implementation of management action (organizational responsibility and process improvements), existing insurance coverage, and accounting precautions – we were able to take counteraction, in particular against significant individual risks.
The overall risk of the Group, which is derived from the probability-weighted aggregation of the identified risks, leads to the assessment that an existence-threatening risk-scenario, for which coverage and financing of the losses are questionable, is highly improbable. We are convinced that we will also successfully manage the above-mentioned challenges in the future and benefit from diversification through our different products and markets. For our assessment of the appropriateness and effectiveness of the risk management system and the internal control system we refer to the Statement on Corporate Governance.
In our view, business-related opportunities offer the greatest potential. The activities listed hold significant opportunities for us in the medium to long term, beyond the underlying forecast period. We pursue the opportunities that arise and specify their expected effects in the forecast development of net sales, EBITDA pre, and operating cash flow. Furthermore, we will actively seek new opportunities, examine their implementation, and drive them forward where appropriate. If opportunities arise in addition to the forecast developments, or these occur more quickly than anticipated, this could have positive effects on our net assets, financial position, and results of operations.