Strategic Risks


Strategic risks relate to the business’s ability to stay competitive in the long-term. These risks include the demand shortfall, marketing- and brand risks and dependency of individuals and external partners.

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Risk

7. Competitiveness
International player entering Nordic market
Risk that an international strong market player decides to enter the Nordic market and change the market conditions substantially.
Rating: Unchanged compared to last year

Growth
Revenue growth too slow in relation to “getting big fast”
Revenue growth may be influenced negatively by external factors such as macroeconomic cycles, negative development of salary wages or other changes in other macroeconomic conditions.
Rating: Downgraded below top 20 risks as local scale is now in place

8 & 9. Personnel
Strategic risks related to personnel
8: Risk that the Group lack ability to keep key personnel (retention).
9: Risk that the Group lack ability to attract desired personnel.
Various reasons connected to the offer (monetary, benefits, working environment etc).
Rating: 8 and 9: Unchanged compared to last year

10. Overall economic risks
Risks due to macroeconomic external factors
Risks that are related to the overall or specific economic development in the geographical area that Boozt operates in.
Rating: Increased probability and increased impact compared to last year

11. Reputational risk
Risks due to negative change in the reputation of the Group.
Rating: Unchanged compared to last year

Mitigation of risk

7. Competitiveness
With our curated offering, positioned to stay relevant to the modern Nordic fashion follower we believe that our competitive advantage is strong. We have high awareness within our target group and continue to differentiate ourselves by creating customer loyalty through analysis and data of our product mix, ease and speed of our offering to the customers.

Growth
We actively monitor macroeconomic trends and development within the region that we operate in, as well as the online factors and trends that may affect the sector in which we operate.

8 & 9. Personnel
The Group seeks to be an attractive employer by a competitive offering both in terms of salary and benefits, but also by creating a culture that our employees enjoy being a part of. In our Code of Conduct we state the values that we want the business to live by.

10. Overall economic risks
We actively monitor macroeconomic trends and development within the region that we operate in, as well as the online factors and trends that may affect the sector in which we operate. To mitigate impact of a demand shock we focus on having as few fixed costs as possible to make the cost base variable to the revenue. And then we focus on preserving cash in the balance sheet by measures such as reducing the working capital exposure.

11. Reputational risk
Proper treatment of employees (participation in Collective Bargaining Agreement) and excess employees in the form of cash remuneration and outplacement. In relation to brands, we align performance to secure long lasting relationships. In relation to customers, we constantly monitor satisfaction and live by the notion – “if any doubt – the customer is right”

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