Getinge 2022 Annual Report
Getinge 2022 Annual Report
Introduction
Strategy
Corporate Governance
Annual Report
Sustainability Report
Other information
Contents
OTHER RISK AREAS OF MAJOR IMPORTANCE TO GETINGE
Risks related to healthcare
reimbursement systems
Description
Political decisions can change the
conditions for healthcare through
changed reimbursement models for
healthcare providers.
Potential consequences
Changes to the healthcare reimburse-
ment system can have a major impact
on individual markets by reducing or
deferring grants.
Management
It is difficult to influence this risk since these decisions are outside the Group's control but the risk is limited by
Getinge being active in a large number of markets.
Product liability risks
Healthcare suppliers run a risk, like
other players in the healthcare industry,
of being subject to product liability and
other legal claims.
Such claims can involve large amounts
and significant legal expenses. Getinge
carries the customary indemnity and
product liability insurances, but there is
a risk that this insurance coverage may
not fully cover product liability and other
claims.
The best way of managing these risks is the extensive quality-related and regulatory activities performed by the Group.
Sources of potential future claims for damages are monitored through active incident reporting. Corrective and
protective action (CAPA) is initiated when necessary to investigate the underlying cause, after which the product
design may be corrected to remedy the fault.
The settlement for surgical mesh implants, which Getinge announced previously, has been completed and payment of
the majority of the damages was made in the first quarter of 2023. The remaining portion of the payment is expected to
be made in the first half of 2023.
Risks related to intellectual
property rights
Getinge's leading positions in many
of the Group's product segments are
based on patent and trademark rights.
These rights could lead to disputes with
competitors.
Getinge invests significant resources
in product development that results
in patent rights. There is a risk that the
Group will be involved in costly disputes
concerning such rights and thus a risk
that invested resources will not generate
the expected return if such a dispute
is lost.
To secure returns on these investments, Getinge actively upholds its rights and monitors competitors' activities closely.
If required, Getinge will protect its intellectual property rights through legal processes.
Financial risks
Getinge is exposed to a number of
financial risks in its operations. Financial
risks principally pertain to currency
risks, interest-rate risks, and credit and
counterparty risks.
Fluctuations in exchange rates and inter-
est rates and changes in counterparties'
credit profiles could adversely affect the
Group's income statement and balance
sheet.
Risk management is regulated by the finance policy adopted by the Board and a Treasury Directive approved by the Getinge
Executive Team based on the finance policy. The ultimate responsibility for managing the Group's financial risks and
developing methods and principles of financial risk management lies with the Getinge Executive Team and the Treasury
function. For more detailed information concerning these risks, refer to Note 28.
Information and
data security
Leaks of confidential information or
hacking into the Group's IT system
resulting in restricted availability or
interruptions of business-critical
systems.
Leaks of personal data could lead to
high fines. Hacking into IT systems could
lead to business interruptions. A loss
of sensitive information may adversely
affect confidence in the company.
The Group's IT structure is to be considered to be decentralized, which reduces the consequence of any unauthorized
access. The Group has improved user authentication during the year to prevent hacking. This work will continue in the
year ahead. The Group also closely monitors critical systems to prevent hacking.
53View entire presentation