Slide Image

Regulatory risks

Regulatory risks are related to the ability of the business to handle the effects of new legislation and regulations, and to handle unforeseen disputes or other legal or contractual uncertainties.

Risks

1. Intellectual property rights

Balco invests significant resources in product development and in protecting the company’s innovations through patents. Were Balco not to succeed in protecting and maintaining its intellectual property rights, the risk would arise that other companies would be able to copy the Balco’s products which might have a negative effect on its business, sales and earnings. 

2. Political decisions, legislation and regulations 

Political decisions can affect the demand for Balco’s products, both positively and negatively. Political decisions entail changes in legislation, the application of existing laws and regulations, and future subsidies and taxes in housing and home construction.

3. Disputes and legal proceedings

Balco may become involved from time to time in disputes and may be the subject of claims regarding contract questions, delays, alleged defects, environmental questions, etc.

Risk management

1. Intellectual property rights

Balco continuously develops its products which means that it gradually upgrades its patents. A significant share of the company’s innovations is protected through patents. A matching is carried out on a regular basis between new development and patent applications.

2. Political decisions, legislation and regulations

Balco continuously monitors the discussions and changes taking place with respect to political decisions, amended legislation, and changes in regulations. The company’s business model has been established to ensure that this process takes account of the laws and regulations specific to each market.

3. Disputes and legal proceedings

Balco has written agreements with its customers and its suppliers. Any differences of opinion are often solved informally during the course of the project.