Audi 2011 Annual Report Download - page 179

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In order to be prepared for increasingly volatile and heterogeneous developments on global
automotive markets, and so that the Company can respond swiftly and efficiently, Central Risk
Management operates in partnership with the non-central risk managers in the divisions. Opera-
tional risk management tasks remain part of the processes handled by the individual divisions
and subsidiaries, while Central Risk Management performs a coordinating and supporting role.
It sets standards that apply Group-wide and implements regulations that ensure risks are re-
corded and evaluated uniformly. At the same time, Central Risk Management monitors the ef-
fectiveness of the risk management instruments in use non-centrally (internal controlling system)
with the aim of achieving ongoing improvements. Applying and controlling risk management
instruments remains the responsibility of non-central risk management functions.
Within the scope of a risk early warning system, risk management analyzes developments in the
Company’s operating sphere to identify changed or new risk indicators. Preventive measures are
then developed and implemented by the risk managers in the areas concerned. This broad-based
policy is designed to increase risk transparency and risk awareness within the Audi Group. The
effectiveness of the early warning system for risks is assured by an ongoing, structured exchange
of information between Central Risk Management and non-central risk managers.
Improved risk management serves to place the business model on more stable footing. It thus
supports the attainment of the strategic corporate targets.
Together with the compliance organization, Central Risk Management reports to the Board of
Management and Supervisory Board on an ongoing basis in order to support the strategic decision-
making process in the Company. The risks identified in the Audi Group and the countermeasures
adopted for them are an integral part of corporate planning and management.
RISK MANAGEMENT WITHIN THE AUDI GROUP
Non-central risk managers
Central Risk Management
Transparency
Risk inventory – Risk evaluation –
Risk early warning – Risk culture
Steering
Risk avoidance – Risk minimization –
Risk reporting – Risk monitoring