Risks and uncertainties

AddLife is an acquisition‑driven and decentralised Company Group in Life Science, mainly active in the European market.

Risk management is an integral part of the Group’s governance and follow‑up and aims to identify, analyse and manage the most material risks that may affect AddLife’s ability to execute its strategy and achieve its established targets. The Board of Directors has the overall responsibility for risk management, sets the frameworks, policies and guidelines, and regularly monitors the Group’s material risks.

Group Management is responsible for continuously identifying, assessing, quantifying and prioritising risks within each business area, while the subsidiaries are responsible for the operational management of risks based on common policies, instructions and internal controls. The overall risk profile is reviewed at least annually and is updated as needed during the year, including an assessment of any material changes compared with the preceding year.

AddLife’s risk management is structured around strategic, operational, financial and other potentially significant risks, including financial reporting and regulatory requirements.

Earnings, financial position and strategic position are affected both by internal factors that the Group can influence and by external factors over which the Group has limited control. Among the external risk factors that are most significant for AddLife are general economic and political conditions, public procurement and reimbursement systems in healthcare, technological developments, dependence on customers and suppliers, as well as IT security and cyber risks.

In addition, AddLife is exposed to financial risks such as transaction and translation exposure, financing and interest rate risk, and credit and counterparty risk. A more detailed description of how AddLife manages financial risks is provided in Note 4.