The SKF Group operates in many different industries and geographical areas. A general economic downturn on a global level, for example caused by a pandemic, or in one of the world’s leading economies, could reduce the demand for the Group’s products, solutions and services. Terrorism and other hostilities, natural disasters and disturbances in worldwide financial markets, could also have a negative effect on the demand for the Group’s products and services. There are also regulatory requirements, taxes, tariffs and other trade barriers, price or exchange controls or other  governmental policies that could limit the SKF Group’s operations.

SKF applies an integrated approach to risk management and has implemented an enterprise risk management (ERM) process that covers all parts of the Group. The risk impact includes impact on strategy, long term financial performance, as well as brand and reputation. The enterprise risk management process is illustrated below. The main risks identified during the 2023 Group ERM process are presented on page 40 in the Annual Report 2023. The main areas of opportunity are described on pages 21-27 in the Annual Report 2023.

As with other risks, SKF applies an integrated approach to the identification and management of risks related to sustainability. The table on page 41 in the Annual Report 2023 provides a summary of the main sustainability risks and SKF’s approach to managing them. For information about financial risks including currency risks, interest risks, liquidity risks and credit risks, see Note 26 on pages 79-81 in the Annual Report 2023. 

For Information about ongoing compliance related investigations, see Note 19 on page 72 in the Annual Report 2023.