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Overview of activities, risk factors
2.7 Risk factors
DANONE
REGISTRATION DOCUMENT 2015
24
2.7 RISK FACTORS
Risk identification and control policy
As any other company Danone is facing external and internal risks
which can affect the targets' achievement. The main risks Danone
is exposed to as of the date of this Registration Document are de-
scribed in the following part.
Danone maintains an active risk identification and management
policy aimed at protecting and developing its assets and reputation,
the achievement of its targets and objectives, and protecting the
interests of its shareholders, employees, consumers, customers,
suppliers, the environment and its other stakeholders without
guaranteeing the total absence of risks.
This risk identification and management policy is described in the
Chairman's report on internal control and risk management in
section 6.4
Internal control and risk management
.
Principal risk factors
Summary of principal risk factors to which Danone believes it is exposed as of the date of this
Registration Document
Risks associated with
Danone's image and
reputation
Risks associated with product quality
Risks associated with health and the positioning of certain products
Other general risks associated with Danone's image and reputation
Operational risks
associated with Danone's
business sector
Raw materials: price volatility and availability
Concentration of distribution, customer default
Competition
Geopolitical environment
Economic situation in Danone's principal markets
Weather conditions and seasonal trends
Operational risks specific
to Danone's activity and
organization
Concentration of purchases of certain products and services with a limited number of suppliers
Danone's position in certain markets
Innovation and consumer taste
Human resources and staff
Human resources and restructuring
Information systems
Internal control deficiency
Insurance coverage deficiency
Risks associated with
external growth
Company acquisitions
Partnerships
Unfavorable business performance and business forecasts and impact on intangible asset impair-
ment tests and Investments in associates
Legal and regulatory
risks
Intellectual property
Ethical and non-compliance risks
Environmental regulations
Other regulations
Natural, industrial and
environmental risks
Natural and industrial risks
Environmental risks
Consumer choices, preferences or environmental preferences
Financial market risks
Financial market risks
Currency risk related to operating activities
Currency risk related to financing activities
Financial statements translation into euros
Liquidity
Interest rates
Counterparty, credit
Company shares
Other companies' shares
These risk factors are described hereafter.