Our internal risk management and control system is based on identifying external and internal risk factors that could influence our operational and financial objectives. It contains a system of monitoring, reporting and operational reviews. All material risk management activities are discussed with the Audit Committee and Supervisory Board. Major risk factors – including those specific to the semiconductor industry, ASML or its shares – are disclosed in our annual reports. These risks include, but are not limited to: economic conditions; product demand and semiconductor equipment industry capacity; worldwide demand and manufacturing capacity utilization for semiconductors; manufacturing efficiencies; new product development; customer acceptance of new products; and reliance on a limited number of key component suppliers.

The ASML Board of Management and senior management conduct an annual review of key strategic risks and define mitigating actions. This risk review is based on the ‘ASML Risk Universe’ – a framework of formal risk definitions, including sustainability issues such as environmental risks and health and safety. The results of the review and progress updates are reported to the Audit Committee.

As a result of the 2011 risk review, we identified no major or moderate sustainability risks –such as climate change risks or significant negative economical, social or environmental impacts of ASML's operations on local communities –  that would require changes to ASML’s sustainability strategy and targets. In addition, we continue to ensure that we meet our long-term commitment to customers with our Corporate Business Continuity Manual as a basis.

Business continuity is explicitly addressed in our supply chain risk management process. For ASML’s manufacturing sites, a detailed analysis was executed in 2011 to re-assess ASML’s business interruption exposures. This analysis included an evaluation of the contingency and recovery measures in place to restore business processes to a normal level of operation after a disaster and/or unexpected event. In 2012, ASML will continue to formalize the business continuity management processes.