Market risk |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Disclosure of Financial Risk Management [Abstract] | |
| Market risk | 5.1 Market risk On is exposed to certain market risks in the ordinary course of business. Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk comprises of three types of risk: interest risk, currency risk and other price risk. Financial instruments affected by market risk include cash and cash equivalents. The market risk that On is principally exposed to is fluctuations in foreign currency exchange rates (see note 5.2 Foreign currency risk). In order to minimize the risks associated with supply chain constraints and the availability of raw materials, On adopts a multi-sourcing strategy of diversifying suppliers and purchase plans with a medium-term time horizon. The price for raw materials is generally fixed for a six-month period, in the absence of significant exchange rate and commodity price fluctuations. There were no material changes in the On’s market risk exposures or changes in the way risk is managed and valued during the period.
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