Airbus 2015 Annual Report Download - page 158

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 126 l
Corporate Governance
4.1 Management and Control
development while actively seeking to reduce overall risk
criticality. The risk management organisation is structured as
a cross-divisional Centre of Competence (“CoC”) and pushes
for a proactive risk management culture; and
 the management on executive levels assume responsibility
for the operation and monitoring of the ERM system in
their respective area of responsibility. They seek to ensure
transparency and effectiveness of the ERM system and
adherence to its objectives. They take responsibility for the
implementation of appropriate response activities to reduce
probability and impact of risk exposures, and conversely for
the implementation of appropriate responses to increase
probability and impact of opportunities.
4.1.3.3 ERM Effectiveness
The ERM effectiveness is analysed by:
 Corporate Audit, based on internal corporate audit reports;
 ERM CoC, based on ERM reports, confirmation letters, in situ sessions (risk reviews etc.), participation to key controls (e.g.major
Programme Maturity Gate Reviews).
The combination of the following controls is designed to achieve reasonable assurance about ERM effectiveness:
Organisation Explanations
Board of Directors/
Audit Committee Regular monitoring The Board of Directors and the Audit Committee review, monitor and supervise the ERM system.
Top Management ERM as part of the regular divisional business reviews
Results of the operational risk and opportunity management process, self-assessments and confirmation
procedures are presented by the Divisions or Business Units to top management.
Management ERM confirmation letter procedure
Entities and department heads that participate in the annual ERM compliance procedures have to sign ERM
confirmation letters.
ERM department ERM effectiveness measurement
Assess ERM effectiveness by consideration of ERM reports, ERM confirmations, in situ sessions
(riskreviewsetc.), participation to key controls (e.g. major Programme Maturity Gate Reviews).
Corporate Audit Audits on ERM
Provide independent assurance to the Audit Committee on the effectiveness of the ERM system.
Ethics and Compliance Alert System
Detect deficiencies regarding conformity to applicable laws and regulations as well as to ethical business principles.
4.1.3.4 Board Declaration
The Board of Directors believes to the best of its knowledge
that the internal risk management and control system over
financial reporting has worked properly in 2015 and provides
reasonable assurance that the financial reporting does not
contain any errors of material importance.
No matter how well designed, all ERM systems have inherent
limitations, such as vulnerability to circumvention or overrides
of the controls in place. Consequently, no assurance can be
given that the Company’s ERM system and procedures are or
will be, despite all care and effort, entirely effective.
4.1.3.5 Business Processes Covered
bytheERM System
Based on the Company’s activities, 20 high-level business
processes have been identified within the Company. They are
categorised into core processes (research and development,
production, sales, after-sales and programme management),
support processes (corporate sourcing, Human Resources,
accounting, fixed assets, treasury, information technology,
mergers and acquisitions, legal and insurance) and management
processes (strategy, corporate audit, controlling, compliance,
risk management and management controls). These business
processes, together with the corresponding ERM processes,
are designed to control process risks that have significant
potential to affect the Group’s financial condition and results
of operations. Below is a description of the main business
processes at the respective headquarters’ level which were
in place during 2015.
Accounting
At the core of the Company’s ERM system are accounting
processes and controls designed to provide reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements and other financial
information used by management and disclosed to the
Company’s investors and other stakeholders. The integrated
approach to planning and reporting aims to improve internal
communication and transparency across departments and
organisational units within the Company.
The Company’s financial control model defines the planning
and reporting procedures that apply to all operational units of
the Group, as well as the responsibilities of the Chief Financial
Officer, who is charged with developing, implementing and
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015