UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 53
Volatility in the macro environment
Risk and impact
Kingspan products are targeted at both the
residential and non-residential (including
retail, commercial, public sector and high
rise offices) construction sectors. As a result,
demand is dependent on activity levels
which may vary by geographic market and is
subject to the usual drivers of construction
activity, (i.e. general economic conditions
and volatility, Brexit, pandemics, political
uncertainty in some regions, interest rates,
business/consumer confidence levels,
unemployment, and population growth).
While construction markets are inherently
cyclical, changing building and environmental
regulations continue to act as an underlying
positive structural trend in demand for many
of the Group’s products.
Actions to mitigate
The exposure to the cyclicality or downturn due to the impact of
a pandemic of any one construction market is partially mitigated
by the Group’s diversification geographically, by end application
and by product.
As set out in the Business Model & Strategy, the Group has
mitigated this risk through diversification as follows:
- significant globalisation strategy with a presence in over
70 markets;
- launch of new innovative products and an approach of continual
improvements to existing product lines; and
- acquisitions made during the year extend the geographic
reach of the Group.
The full details of these diversifications are set out in the Business
Model & Strategy report contained in this Annual Report.
Product failure
Risk and impact
A key risk to the Kingspan business is
the potential for functional failure of our
product which could lead to health, safety,
and security issues for both our people and
our customers.
Actions to mitigate
Dedicated structures and processes are in place to manage and
monitor product quality controls throughout the business:
The Kingspan brand is well established and is
a key element of the Group’s overall marketing
and positioning strategy. In the event of a
product failure, the Kingspan brand and/or
reputation could be damaged and if so, this
could lead to a loss of market share.
- The Group appointed a Head of Compliance & Certification
reporting to the Group CEO to ensure a rigorous approach to
certification, testing and product compliance across the Group
and to ensure consistent and robust application of processes
centred around our core commitment to product safety.
- New products go through a certification process which is
undertaken by a recognised and reputable authority before it is
brought to market.
- The terms of reference for the Audit & Compliance Committee
include oversight of the product compliance agenda.
- Our businesses employ quality control specialists and operate
strict policies to ensure consistently high standards are
maintained in addition to the sourcing and handling of raw
materials.
- The construction of a dedicated Kingspan Fire Test centre using
Kingspan products allows for more expedient and significant
testing to take place.
- Quality audits are undertaken at our manufacturing sites. 88 of
our facilities are ISO 9001 certified.
- Effective training is delivered to our staff.
- Proactively monitor the regulatory and legislative environment.
Innovation
Kingspan Group plc Annual Report & Financial Statements 2021
Global
Planet Passionate
Completing the Envelope
Risk & Risk Management
