As a global company, HUBER+SUHNER is exposed to a diverse and ever-evolving set of risks. Managing these risks is an integral part of our business. Our risk management framework allows us to identify, assess, and mitigate risks in a continuous and iterative process.
Our global risk policy sets out our approach for managing corporate risks. We use a framework to evaluate existing and potential risks by measuring their likelihood and financial impact in a two-dimensional matrix. As non-financial and sustainability-related risks can significantly affect company finances, they have been integrated into our risk management process.
For each identified risk topic, an “owner” is assigned from the extended Executive Group Management (EGM) or other senior management. Each risk owner analyses the risk within their area of responsibility. This includes the following:
Risks are reviewed annually for materiality and reprioritised as needed. Non-material risks are removed from the map, while new material risks are added. Risk owners identify drivers, draw conclusions, and propose mitigation measures. The annual risk report summarises HUBER+SUHNER’s risk position, profile, key risks, and mitigations, and is submitted to the EGM and Board of Directors for approval, then shared with the extended EGM, General Counsel, Area Compliance Officers, and Global Process Owners.
Risks are mapped and prioritised based on their significance regarding the financial impact they may have on the company as well as their likelihood of occurrence. The top nine risks identified in 2025 are the following (in alphabetical order):
Cleaner economy transition: Transition risks are associated with the shift to a cleaner economy as part of efforts to combat climate change. They arise from increasing compliance obligations, customer demands, and transparency requirements. Our climate targets and transition plan, as well as continuous monitoring of the compliance landscape and responses to regulatory changes and customer sentiment, are actions to mitigate these risks (see chapter Environment for further details).
Cybercrime: In addition to a significant number of “commercial” cybercriminals, government-backed criminals are increasingly pursuing attacks on intellectual property (IP) and data. In addition to effective information technology (IT), stringent processes, governance, and awareness campaigns among employees, such threats are managed by ensuring that information security risks at HUBER+SUHNER are identified, evaluated, and mitigated for each application level.
Disaster: Events such as natural disasters, fires, electricity/gas outages, IT interruptions, strikes, geopolitical conflicts, and terrorist attacks can disrupt our delivery of goods. Climate change exacerbates these risks, which we manage as a risk driver (see Environment chapter for details). We mitigate these risks through business continuity plans and emergency procedures, which are in place globally. Our global operations network supports these efforts.
Exposure to currency fluctuation: HUBER+SUHNER has a significantly higher portion of its cost in Swiss francs than in sales. Due to its status as a “safe haven” currency, the Swiss franc will remain strong in demand. Transfer of cost from Swiss franc to Euro and US dollar as well as foreign exchange accounting are two important measures to hedge against these risks related to currency fluctuations.
Geopolitical tensions: Geopolitical conflicts may threaten global supply chains and operations, as well as increase the tariff burden on companies as trade barriers are imposed. To mitigate this risk, we closely monitor regulatory and political developments in relevant countries and adjust our sales and supply chain strategies accordingly, for instance by strengthening our local-for-local approach in markets such as China, India and the US.
Large projects: As large-scale customer orders require HUBER+SUHNER to commit to producing and delivering certain components and products at high volumes, there is a risk associated with the ramp-up and industrialisation of manufacturing processes. Mitigation measures include strengthening automation know-how and key account management as well as implementing contractual risk controls.
Non-compliance with internal and external standards: Growing compliance requirements present an increasing challenge for companies operating globally. In particular, the areas of export control and taxation have grown in complexity. To mitigate this risk, HUBER+SUHNER follows stringent processes to determine necessary measures and maintains a compliance programme that ensures constant monitoring of relevant regulations and continuous education of our employees.
Serial defects: Serial defects of products may occur because of design and/or manufacturing flaws. This can lead to exhaustive dismantling and replacement actions and – in the event of safety concerns – to product recalls. To mitigate this risk, we maintain a quality-centric mentality and strive for highest reliability solutions in our design processes, operational excellence, implementing processes and controls.
Worldwide pandemic: Based on the experiences of the Covid-19 pandemic, which led to global business disruptions and supply chain shortages, a global pandemic may still pose a potential risk to our business. A comprehensive pandemic plan and continuously evolving our operational set-up based on lessons learnt increase our resilience in a potentially emerging health crisis.