Description

The risk that uncertainty regarding political decisions by the British government, a weak pound and falling economic growth will have an impact on the operations of Abellio UK, putting pressure on its profitability.

Explanation

Much is uncertain about the effects of Brexit. For example, the economy is expected to grow at a slower rate (based on analyses by Oxford Economics and CEBR), but the extent of that effect is uncertain. The effect on the exchange rate of the pound is also uncertain, while this exchange rate affects the flow of capital from the United Kingdom to the Netherlands. In addition to the financial and economic consequences, there is also a considerable degree of political uncertainty.

Measures

Commercial initiatives are being reviewed and modified where necessary. Stakeholder management is a continuous process in which the strategic intentions of key stakeholders can be identified. The impact of Brexit on our financial performance will be monitored continuously and as part of that, planned cost-cutting programmes will be brought forward.

Risk control trend

Abellio has taken various measures in an effort to prepare for possible developments. However, there are many uncertainties concerning the impact of Brexit. It is not clear at present whether the current measures will be enough to deal with these uncertainties.

Residual risk

High. The current risk profile does not yet match the desired risk profile.