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ules of operation aimed at reducing the probability
of harmful consequences and preventing actions
caused by such circumstances. The legal function is
integrated into the adoption of business decisions,
providing for the timely detection of legal risks.
Incidental risk
Incidental events are quite rare but may have severe
consequences for operations. The company protects
itself against incidental risk through insurance or
reinsurance contracts.
Risk related to securities issued by KD
Holding
The holders of securities issued by KD Holding are
exposed to the following risks:
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Market risk: shares and bonds are sensitive to
changes which the issuer cannot influence such as
changes in the economy or legislation, crises, and
natural and ecological disasters;
Liquidity risk: the risk of a security holder not being
able to sell a security or only being able to sell it at a
lower price owing to insufficient demand;
Credit risk: the risk of the bond issuer failing to pay
interest and principal.
KD Holding can only impact the exposure to credit
risk by managing other risks and thus influencing the
stability and long-term growth of the Group.