12.3 Types of risk

12.3.1 Risks arising from the economic crisis

Even though the markets recovered considerably in 2010, risk management continued to examine the impact of risks resulting from the financial and economic crisis on the KION Group's financial position and financial performance. In addition to ongoing screening and monitoring, the risk report therefore includes a separate assessment of the risks arising from the receding crisis in financial and product markets. The economic problems in Greece, Spain, Portugal and Ireland, plus the EU rescue packages, highlight the fact that the financial and economic crisis has not yet ended. Risk management is also focusing once more on the risks associated with market recovery (e.g. potential supply bottlenecks). However, demand for industrial trucks remains significantly below its pre-crisis level. The KION Group has continued to systematically implement its KIARA performance enhancement programme and has significantly lowered costs.

Government action to support economies and the financial system resulted in a rise in government indebtedness worldwide. In Greece, Spain, Portugal and Ireland, debt repayments and the consolidation of national budgets restrict future flexibility and increase the pressure on governments to take appropriate action in terms of both income and expenditure. It is impossible to predict the implications for the material handling market and therefore also for the KION Group.

12.3.2 Market risks

12.3.3 Competition risks

12.3.4 Procurement and sales risks

12.3.5 Production risks

12.3.6 Financial risks

12.3.7 Risks from financial services

12.3.8 Human resources

12.3.9 IT

12.3.10 Legal risks

12.3.11 External risks

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