Shareholders' Letter
Shareholders' Letter
Shareholders' Letter
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Risks<br />
Taking calculated risks – the aim of the management risk process<br />
is to evaluate risks in order to optimise business success.<br />
General statement on the risk situation<br />
Any changes in the risk categories “strategy, credit, market, business and operational risks” can<br />
have a sustained adverse impact on the company’s ability to achieve its defined goals. Such<br />
changes need to be identified, assessed and managed by employing an appropriate risk strategy.<br />
Identified risks are reviewed on an ongoing basis and incorporated, wherever practical and feasible,<br />
in Swisscom’s business plan. Nevertheless, most regulatory or structural risks (technological<br />
changes) can only be factored into the business plan to a limited extent, if at all.<br />
The telecommunications sector is characterised by continuous changes in technology, regulations,<br />
competition and customer behaviour. At the same time, it is increasingly influenced by new trends,<br />
and the traditional role of telecommunications companies is evolving into that of a service provider<br />
competing in a highly dynamic TIME market (Telecommunications, Information, Media, Entertainment).<br />
The forthcoming financial year will see decisions of a regulatory nature which may have a profound<br />
impact on the financial performance of the Swisscom Group.<br />
Other risk factors include technical risks, such as disruption to operations, or changes in the competitive<br />
environment.<br />
Ever since the financial crisis, business development has been marked by a climate of uncertainty,<br />
and a renewed economic (or financial) crisis would only serve to heighten various risks facing<br />
Swisscom.<br />
Over the long term the trend in the ICT (Information and Communication Technology) business<br />
model towards becoming a selective service integrator could pose risks and necessitate fundamental<br />
changes in the approach to human capital, transformation and the business model.<br />
At the same time, demographic changes will present ICT providers such as Swisscom with new<br />
opportunities and challenges in terms of product design, service delivery, communication and<br />
marketing.<br />
Management Commentary 68 | 69<br />
Supplement and outlook<br />
Risks
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