The Group’s main financial market risks are liquidity risk, foreign currency risk, credit risk and interest rate risk.

Liquidity risk
The Group monitors its liquidity risk on an ongoing basis. The liquidity planning considers the maturity of both the financial investments and financial assets (eg accounts receivable, other financial assets) and projected cash flows from operations.

Foreign currency risk
The Group has revenue and expenses in 70 currencies. Of these, five currencies (NOK, EUR, USD, KRW and GBP) make up for approximately 75% of the total revenue. In many currencies DNV has a natural hedge through a balance of revenue and expenses. Major imbalances on the balance sheet are hedged through forward exchange contracts.
DNV has forward exchange contracts in 22 currencies, totalling a net amount of approx. NOK 1 500 mill. The most important contracts are in USD (43%), EUR (13%) and GBP (13%).

Credit risk
Receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. There are no significant concentrations of credit risk within the Group. With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, available-for-sale financial investments and certain derivative instruments, the Group’s exposure to credit risk arises from default of the counter-party, with a maximum exposure equal to the market value of these instruments.

Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s short term financial investments and forward exchange contracts.