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Brookfield Renewable Partners L.P.
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== '''<u>Risks</u>'''<ref name=":1" /> == === Financial Risks === '''Electricity Price''' - Exposure to movements in the market price of energy. '''Foreign Currency''' - Exposed to foreign currency risk including the Canadian dollar, Brazilian real, Euro, British pound sterling, Colombian peso, Indian rupee, Chinese yuan, and Malaysian ringgit. The risk is related to operations, anticipated transactions and certain foreign currency debt. '''Interest Rate''' - Exposed to interest rate risk on the interest rates for variable rate debt. '''Credit''' - Exposed to credit risk from operating activities and certain financing activities. The risk is due to counterparties not being able to meet their obligations on energy contracts, interest rate swaps, forward foreign exchange contracts, physical electricity and gas transactions as well as trade receivables. '''Liquidity''' - Exposed to liquidity risk for financial liabilities. Also subject to internal liquidity risk as they conduct business activities through separate legal entities, and are dependent on receipt of cash from those entities to pay off corporate expenses and make dividend payments to shareholders. === Industry and Operational Risks === '''Natural resource availability''' - Revenues generated by renewable power facilities are correlated to the amount of electricity produced, which are dependent on available water flows, wind and irradiance. The generation facilities are susceptible to damage during extreme weather events, climate change may increase the frequency of extreme weather events, as well as cause a shift in the existing weather patterns. '''Contract Expiration''' - Certain power purchasing agreements in the portfolio will be subject to re-contracting in the future, if the price of electricity in power markets is declining at the time of re-contracting, it will impact the ability of the company to be able to re-negotiate at favourable terms. '''Concession renewal''' - The company holds concessions and has rights to operate facilities, e.g. for hydroelectric facilities, the concessions include the rights to the land and water required for power generation. If renewal rights are not granted or an additional cost is imposed on the concession, it could significantly impact operational capacity and profitability. '''Dam failures''' - Occurrence of dam failures at any hydroelectric generation stations would result in loss of generating capacity until the failure has been repaired, harm to third parties or the environment could expose the company to liability costs. === Other Risks === '''Cyber Attacks''' - The business may be subject to cyber security risks or other breaches of information intended to obtain unauthorised access to proprietary information and that of business partners, destroy data or disable systems through cyber attacks. Any breach of information could go undetected for some time. '''Development Failures''' - The company has a large development pipeline that includes projects at different levels of advancement, there is no guarantee that all project will be successfully delivered, or delivered on time. '''Employee Retention''' - The business depends on the skill of the professionals employed, future success will depend on the continued service of these individuals, which could impact the ability of the company to achieve its objectives.
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