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## Risks and their management 

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Dialog’s risk management process follows a sequence of risk identification, assessment of probability and impact, and assigns an owner to manage mitigation activities, liaising with internal and external auditors. 

## Market environment 

Dialog operates in the fast-moving, highly competitive consumer electronics market where manufacturers demand the best quality at lowest prices from their suppliers. Typical to our market are breakthrough innovations, fast rising leaders, hypes, mass production and global visibility. As a fabless semiconductor manufacturer, Dialog’s position in its segments of operation is maintained by a high degree of innovation and fast time-to-market. 

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## Business relations 

Dialog seeks to mitigate the cyclical volatility of its market by diversifying into new sectors and broadening its customer base to reduce exposure to the potential loss of any major customer. We need to seek partnerships that are flexible to the fluctuations in demand but able to ensure the continuity of production. By distributing our supply over multiple partners, we seek to prevent shortages in the event one of our suppliers faces capacity constraints, financial problems or natural disasters. 

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