Audi 2011 Annual Report Download - page 181

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Risk identification, assessment and documentation
Risk management within the Audi Group satisfies both the latest statutory requirements and
internal regulations. The statutory framework is regularly examined and new requirements are
clearly identified and implemented.
Appropriate risk surveys are sent out by Central Risk Management to the risk managers of the
individual divisions and subsidiaries from which considerable risks to the Audi Group could
spread.
In a standardized risk survey conducted annually by Central Risk Management, the risk compliance
coordinators from each division of AUDI AG and the risk compliance officers from the subsidiaries
each record their risks. Central Risk Management checks compliance with Group-wide standards
and processes of risk recording, and assists the risk compliance coordinators with compiling
their risk reports, which serve as the basis for defining the risk profile of the Group as a whole.
The plausibility and appropriateness of the risk reports are scrutinized with the aid of more in-
depth interviews conducted in selected divisions and subsidiaries.
Each individual risk is assessed initially in terms of its probability. The potential loss is then
evaluated, along with the risk management instruments implemented and their effectiveness.
All the necessary precautions are taken to minimize or prevent identified risks.
In addition to the standardized risk report, all departments are required to notify Central Risk
Management of short-term changes in the risk exposure by means of ad hoc announcements.
Central Risk Management is responsible for providing the Board of Management and Supervisory
Board with regular, prompt updates on the Audi Group’s corporate risk profile, using the reporting
channels defined Group-wide.
In their examination the independent auditors assess whether the Board of Management has
taken the measures incumbent upon it as defined in Section 91, Para. 2 of the German Stock
Corporation Act (AktG) in an appropriate manner, and whether the monitoring system to be set
up under this act is fit for purpose. The Audi Group thus satisfies the requirements of German
corporate governance legislation (KonTraG). The requirements under KonTraG are furthermore
incorporated into reporting to comply with the German Commercial Code (HGB).
Ongoing examination and refinement
The processes of the internal control and risk management system within the Audi Group are
continually being revised and improved. The findings of the internal Auditing department and
external independent auditors provide a basis for ongoing improvements and promote the crea-
tion of a learning organization. The Auditing department and independent auditors constitute
impartial bodies with the task of monitoring correctness and effectiveness. The Board of Man-
agement and Supervisory Board are informed of topical developments both according to a regular
cycle and ad hoc.
Individual risks
The Audi Group encounters a large number of individual risk areas within the context of its
business activities. The risks highlighted in each case refer to the period 2012 through 2014.
Economic risks
As a globally active automotive manufacturer, the Audi Group’s business operations are influ-
enced to a high degree by the international economic framework. The principal sales markets
that are of importance to the Company – Europe, China and the United States – are especially
significant in this respect.