12.3 Types of risk

12.3.1 Risks arising from the sovereign debt crisis

Even though the markets performed very well overall in 2011, risk management continued to examine the possible impact of the financial crisis and of the performance of the real economy on the KION Group's financial position and financial performance. In addition to ongoing screening and monitoring, the risk reports therefore included a separate assessment of the risks arising from the sovereign debt crisis. The economic problems in Greece, Italy, Spain, Portugal and Ireland, the EU rescue packages and the undercapitalisation of European banks that has become apparent were all signs that the financial crisis – and in particular the economic crisis in southern Europe – has not yet ended. Furthermore, it may flare up again at any time and spread to other regions.

Government action to support economies and the financial system resulted in a rise in government indebtedness worldwide. In Greece, Italy, 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 that this may have 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 Accounting risks arising from goodwill and the brands

12.3.8 Risks from financial services

12.3.9 Human resources

12.3.10 IT

12.3.11 Legal risks

12.3.12 External risks

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