Audi 2008 Annual Report Download - page 183

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The Audi Group’s premium vehicles aspire to the customer’s highest possible expectations
of quality. Even so, potential product liability risks can never be entirely ruled out. As well as
causing serious damage to the Company’s image, this can have major financial consequences;
particularly should they lead to lawsuits in the U.S. market. The Audi Group counteracts such
risks through effective and systematic quality management, and by taking out insurance cover
and creating provisions within an economically reasonable scope.
The Audi Group is not currently involved in any legal or arbitration proceedings that could have
a lasting impact on the economic position of the Company.
PERSONNEL RISKS
As a manufacturer of technologically advanced, high-quality premium vehicles, the Audi Group
will continue to depend on its well-qualified specialists and managers. Thanks to its reputation
as an attractive employer, the Audi Group is in a very strong position to attract good personnel
despite an intensely competitive job market. Furthermore, its broad training program facilitates
the securing of junior personnel for specific tasks within the Company itself.
The Audi Group seeks to minimize the loss of expertise through fluctuation or partial retirement
by implementing comprehensive, needs-based incentive systems and intensive competence
management. These involve in particular the systematic transfer of knowledge from departing
experts and managers to their successors.
Germany’s aging, shrinking population poses a major challenge to all companies. The Audi
Group identified this scenario long ago and promptly took initiatives to correctly counter this
development. As well as adapting working conditions to suit an employee’s age, it applies
models for the individual’s working life and makes special part-time arrangements. Other
priority areas include preventive health care and strengthening employee awareness about
taking responsibility for their own financial future.
INFORMATION AND IT RISKS
Efficient, cost-effective processes and information technologies that meet the business require-
ments of the Audi Group are a major success factor behind the realization of ongoing productiv-
ity gains. Moreover, the ready availability of data and information flows across all corporate
locations is of prime importance in keeping procedures throughout the Company swift and effi-
cient. The growing prevalence of electronic networks, however, does harbor potential informa-
tion and IT risks, which could adversely affect financial performance. The principal risks are the
failure of key IT systems within the value chain, unauthorized access to the system, and the
creation of heterogeneous system landscapes. These risks are largely mitigated by stable IT
infrastructures with high availability. In addition, Group-wide security standards have a hand in
largely ensuring the continuity of internal processes and Company security.
FINANCIAL RISKS
The financial risks resulting from the Audi Group’s business activities comprise market price
risks (exchange rate, interest rate and commodity price risks), creditworthiness risks and
liquidity risks.