Airbus 2015 Annual Report Download - page 157

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 125 l
Corporate Governance
Registration Document 2015
4.
4.1 Management and Control
Required key activities in Risk and Opportunity Management
are:
 anticipation of future events and conditions;
 early warning;
 early risks reduction;
 seizing and capturing of opportunities.
Enterprise Risk Management is an operational process
embedded into day-to-day management activities of
Programmes, Operations and Functions. A reporting synthesis
is made and consolidated on a regular basis (quarterly and
yearly).
The aim of the ERM process is to:
 identify, assess, control and mitigate risks, and seize and
capture opportunities;
 monitor the ERM process and to report status and results;
 allow risk-adjusted decisions and management processes
(e.g. planning; decision-making);
 enhance risk-response/ opportunity-capture decisions and
actions;
 identify and manage cross-enterprise risks/ opportunities by
understanding interrelated impacts.
Through ERM, the AirbusGroup Management enables the:
 management of the risk profile associated to the Company’s
strategy;
 management of the risks associated with the Company
activities;
 ERM reporting to the Board of Directors and Audit Committee
(AC) respectively;
The AirbusGroup Board of Directors supervises the:
 corporate strategy and the risks inherent to the business
activities;
 design and effectiveness of the internal risk management
and control systems.
4.1.3.1 ERM Process
The objectives, principles and process for the ERM system
as endorsed by the Board of Directors are set forth in the
Company’s ERM Policy and communicated throughout the
Group. The Company’s ERM Policy is supplemented by various
manuals, guidelines, handbooks, etc. External standards that
contribute to the Company’s ERM system include the Internal
Control and ERM frameworks of COSO, as well as industry-
specific standards as defined by the International Standards
Organisation (ISO).
The ERM system comprises an integrated hierarchical
bottom-up and top-down process to enable better management
and transparency of risks and opportunities. At the top, the
Board of Directors and the Audit Committee discuss major
risks and opportunities, related risk responses and opportunity
capture as well as the status of the ERM system, including
significant changes and planned improvements. This is based
on systematic bottom-up information including management
judgement. The results are then fed back into the organisation.
The ERM process consists of four elements:
 the operational process, which consists of a sequence of eight
consistent standardised components to enhance operational
risk and opportunity management;
 the reporting process, which contains procedures for the
status reporting of the ERM system and the risk/ opportunity
situation;
 the compliance process, which comprises procedures to
assess the effectiveness of the ERM system; and
 the support process, which includes procedures to maintain
and increase the quality of the ERM system.
The ERM process applies to all relevant sources of risks and
opportunities, which are potentially affecting the Company
activities, its businesses as well as its organisation in the
short-, middle- and long-term. The ERM process is part of the
management process and interrelated with the other processes.
The details of application of the ERM process vary with the risk
appetite of management and the size, structure and nature
of the organisational unit, programme/ project, department
or process. Nonetheless, the fundamental principles of the
Company’s ERM Policy generally apply.
For a discussion of the main risks to which the Group is exposed,
see “—Risk Factors”.
4.1.3.2 ERM Governance and Responsibility
The governance structure and related responsibilities for the
ERM system are as follows:
 the Board of Directors supervises the design and effectiveness
of the ERM system including management actions to mitigate
the risks inherent in the Company’s business activities.
TheBoard discusses the major risks based on ERM reporting
or as required depending on development of business risks.
The Board is supported by the Audit Committee, which
discusses at least yearly the activities with respect to the
operation, design and effectiveness of the ERM system;
 the Group’s Chief Executive Officer, backed by the Group
Executive Committee, is responsible for an effective ERM
system, the related internal environment (i.e. values, culture)
and risk philosophy. He is supported by the Group’s Chief
Financial Officer, who supervises the Head of Risk and
Opportunity Management Airbus & AirbusGroup, and the
ERM system design and process implementation;
 the Head of Risk and Opportunity Management Airbus
& AirbusGroup has primary responsibility for the ERM
strategy, priorities, system design, culture development
and reporting tool. He supervises the operation of the ERM
system and is backed by a dedicated risk management
organisation on Group and Division level focusing on the
operational dimension, early warning and anticipation culture
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
Q