SENWES Integrated Report 2020 | Page 92

RISK TREND TRANSITION AND CUSTOMER RISK Risk Events � Continuous increase in market storage capacity. � Clients focused on economies of scale resulting in fewer producers with superior farming operations. Description The group is exposed to technological quantum leaps in agriculture, alternative storage solutions, customer needs and priorities which could all lead to a paradigm shift within the agricultural sector. The group's sustainability and reputation are at risk without transition and diversification. Mitigation and Control Senwes still believes in strong client relationships and continuously attempts to improve these relationships. Customer needs and our ability to fulfil those needs remain high on the company’s agenda. Senwes has further embarked on a project to develop comprehensive farm management solutions which will enhance our customers’ ability to make crucial business decisions based on key drivers. These solutions will integrate the various aspects of the Senwes business value chain in a seamless way, in order to enhance the overall customer experience. Alternative storage structures are addressed by innovative market transactions and by investments in technology and infrastructure at our silos. Opportunities � Expand and optimise customer research and the customer intelligence database of the group to enable the proactive development of solutions, in order to prevent the group from being bypassed in the process where a customer needs to seek a solution to fit his/her needs elsewhere in the market. � Development of solutions (e.g. wealth planning and tax structuring services) that will enable the group to farm alongside its producers. Strategic focus areas triggered � Diversification, horizontal integration and consolidation. � Internal integration of the customer. � Reorganisation of business models. � Unlocking value synergies. � Increased investment in efficiencies within the value chain. � Externalisation. For more info on the group strategy see p. 44 90 ROOTED IN AGRICULTURE