Risk and risk management

Risks and uncertainties are a natural part of all business. Tobii works continuously to identify, assess and manage the risks to which the business is exposed.

Described below, in no particular order and without claim to be exhaustive, are risks considered to be material to Tobii’s future development.

  • Tobii is dependent on development, market acceptance and awareness of its products and technology. If Tobii is unsuccessful in achieving this it could adversely affect the company.
  • Tobii operates in a competitive market and may not be able to compete successfully.
  • Eye-tracking hardware is subject to price decline and Tobii has to adapt as its markets evolve.
  • Tobii is dependent on financing from public and private insurance and funding systems and changes to these systems could adversely affect the company.
  • Tobii is dependent on the supply of certain components and its products are subject to expressed and implied warranties exposing Tobii to interruptions in production, warranty and liability claims.
  • Potential and future acquisitions may not fully achieve Tobii’s anticipated financial and strategic synergies.
  • Tobii is dependent on intellectual property rights and the company’s methods of protecting these rights may be inadequate.
  • There is a risk that Tobii may become involved in legal and administrative proceedings, including claims related to Tobii’s intellectual property as well as claims of potential infringement of third party’s intellectual property rights by Tobii.
  • A large part of Tobii’s balance sheet consists of intangible fixed assets, which may be subject to write-down.
  • Tobii is exposed to tax risks and if these risks materialize it may have an adverse effect on the company.
  • Tobii is dependent on a variety of expert competencies and key individuals. If Tobii fails to retain senior executives and key personnel or to recruit highly skilled personnel, this could hamper the Group’s future expansion.
  • Since Tobii has large parts of its business and its primary revenue in geographic markets other than Sweden, there is a risk of negative impact from currency fluctuations.

For more information, read the latest Tobii Annual Report.