TeliaSonera operates in a broad range of geographical product and service markets in the highly competitive and regulated telecommunications industry. As a result, TeliaSonera is subject to a variety of risks and uncertainties. TeliaSonera has defined risk as anything that could have a material adverse effect on the achievement of TeliaSonera’s goals. Risks can be threats, uncertainties or lost opportunities relating to TeliaSonera’s current or future operations or activities.
TeliaSonera has an established risk management framework in place to regularly identify, analyze, assess, and report business, financial as well as ethics and sustainability related risks and uncertainties, and to mitigate such risks when appropriate. Risk management is an integrated part of TeliaSonera’s business planning process and monitoring of business performance.
Set forth below is a description of factors that may affect TeliaSonera’s business, brand perception, financial position, results of operations or the share price from time to time. For information on risk management, control environment and ongoing activities, see the Corporate Governance Statement and Sustainability Work.
TeliaSonera is also exposed to financial risks such as credit risk arising from default of counterparties, liquidity risk arising from its own default in meeting obligations associated with financial liabilities, currency risk arising from unfavorable foreign exchange rate fluctuations, interest rate risk arising from unfavorable interest rate changes, financing risk and pension obligation risk. Failure by TeliaSonera to effectively manage and hedge these financial risks would have a negative impact on its financial position, results of operations and cash flows. Information on financial risk management is presented in Note C26 to the consolidated financial statements.