2.8 MEUR - Gorenje - Gorenje Group

Risk management in the Home Interior
Division (HI)
Home Interiors Division’s exposure
to most risks is moderate.
Risk management in the Home Interior division mentioned
has been presented in detail in the annual report
of the company Gorenje Notranja Oprema, d.o.o. Only the
most important risks to which the Home Interior Division
is exposed will be presented, as well as the risks that have
an impact on the holding company or the Gorenje Group.
Business risks
As for the business risks, full attention was directed to purchase
risks in the Home Interior Division. The global and
financial crisis increase unpredictability and fluctuations in
prices of input materials. Costs of materials of the Division
are chipboards of all types that have a major impact on
all important production factors (costs, quality, smooth
course of the production and others).
Suppliers of chipboards are organised as a cartel and carry
out a harmonised price policy. Price competitiveness is
also limited in space and time since the materials cannot
be exposed to long transport. Risks are controlled by
the involvement of all suitable suppliers in our purchase
chains, which results in the achievement of optimal prices
and smooth deliveries. The Management Board of the
Gorenje Group has assessed that the exposure to
purchase risks is moderate.
An important field in scope of business risks is also human
resources risks. The volume of orders stabilised in the
previous year, but cost optimisation still dictates certain
The Management Board of the company Gorenje, d.d.
reductions in employees. This requires continuation of
the social dialogue in increases the risks mentioned. For
the purpose of decreasing the human resources risks
increased emphasis is put on a proper and due informing
of the employees. The Management Board of the Gorenje
Group has assessed that the exposure to human
resource risks is moderate.
Financial risks
Due to the serious macro-economic conditions, undivided
attention was directed to credit risks, which include all
risks where economic benefits of the company may decrease
due to non-fulfilment of contractual obligations of
business partners. The exposure to credit risks is controlled
by the same measures as in the holding company. The
Management Board of the Gorenje Group has assessed
that the exposure to credit risks is moderate.
Liquidity risk is mostly associated with the negative
profit or loss of the Home Interior Division. To a
great extent, this risk is eased by optimal current asset
management. Current operation of the Home Interior
Division has been financed also by the holding company
Gorenje d.d., which means that the liquidity risk is
transferred also to it. The Management Board of the
Gorenje Group has assessed that the exposure to
the liquidity risk is moderate.
Operating risk
Within the production risks, much attention was
devoted to the operation of key equipment, operation
of infrastructure including smooth supply with energy
products, and provision of infrastructural adequacy of
hazardous waste management.
ANNUAL REPORT 2011
Production risks are higher for production lines which,
in our case, refers to ceramics production. It has been
controlled by good qualification for work of the employees
and regular maintenance of production lines.
Risks in the field of hazardous waste management
have been limited by constant control, prevention and
employee training The Management Board of the
Gorenje Group has assessed that the exposure to
production risks is moderate.
Risks associated with the provision of availability
and responsiveness of the IT system, depending on
hardware and software, are relevant among information
systems risks. Exposure to these risks has been
controlled by:
� gradual introduction of uniform information system
for all programmes,
� preliminary prepared measures for individual types
of disturbances in the operation of the local computer
network, supporting servers, global communications
and network connections in the system,
� planning of procedures viz. actions at the time of
failure of the information support,
� regular archiving of data,
� regular maintenance of software and hardware
and communication and network connections,
� control of changes in the development of information
systems, and
� suitable training of employees and other measures.
The Management Board of the Gorenje Group
has assessed that the exposure to the information
system risk is moderate.
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