Audi 2012 Annual Report Download - page 192

195
Management Report
140 Audi Group
151 Business and underlying
situation
173 Financial performance
indicators
176 Social and ecological aspects
190 Risks, opportunities
and outlook
190 Risk report
197 Report on post-balance sheet
date events
197 Report on expected
developments
201 Disclaimer
new vehicle projects, technologies or services even after extensive market studies and thorough
project planning and steering.
The development of new vehicles and technologies goes hand in hand with further risks. These
include in particular the loss of expertise to external development partners, as well as changes
to the product at short notice and delays. The Audi Group protects its intellectual property by
choosing its system partners with care and by contractually regulating and enforcing industrial
property rights.
Legal risks
All activities by the corporate bodies, management personnel and employees of the Audi Group
must comply with the current legal framework and with internal corporate guidelines. In addition
to Group-wide codes of conduct, regular training courses help to inform the workforce of legal
and internal requirements, and of any changes to these. This approach enables the Company to
ensure that its actions are always lawful.
Nevertheless, the growing complexity of legal and fiscal requirements creates corresponding
risks. As a result of the growing internationalization and expansion of the Audi Group’s business
activities, there is a risk of legal uncertainty due to differences of interpretation. Nor can the
possibility of deliberate misdemeanors by individual persons be excluded altogether. The pre-
ventive approach of the Audi Group’s compliance organization actively seeks to counter potential
misdemeanors mainly through training.
As a manufacturer of premium automobiles, the Audi Group aims to satisfy its customers’ high
quality expectations in every respect. Nevertheless, the possibility of product liability claims
cannot be excluded. Especially in the U.S market, these may lead to financial losses and significant
reputational harm that could undermine the Company’s long-term financial performance. The
Audi Group counteracts such risks by upholding high quality standards for its products and ad-
dressing quality management systematically. In addition to taking appropriate precautions, it
takes out economically reasonable levels of insurance cover and creates provisions. The same
applies to lawsuits brought against the Company in the United States by commercial patent
exploiters. Defending them is a costly business, and defeat involves financial losses for the
Company.
The Audi Group is not currently involved in any legal or arbitration proceedings anywhere in the
world that could have a lasting influence on the economic position of the Group.
Personnel risks
The enduring success of the Audi Group owes much to our qualified specialists and managers,
and their high level of commitment on the Company’s behalf.
Its human resources work therefore focuses on targeted, demand-centered human resources
development and workforce training. As an attractive employer, the Audi Group holds a strong
position amid intensive competition for well-qualified employees. The Company’s comprehensive
in-house training program also helps it create resources of qualified young employees.
To stem the loss of expertise through fluctuation, the Audi Group maintains employee satisfaction
by providing an extensive, demand-based incentive system and employing intensive competence
management. In anticipation of the loss of retiring experts and managers, the Company practices
timely succession planning.