Audi 2013 Annual Report Download - page 201

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES
MANAGEMENT REPORT
198
A
control procedures. The Board of Management is responsible
for the organizational structure of the risk management system
and internal control system. A Group-wide systematized risk
identification process (governance, risk & compliance [GRC]
process) ensures the basis for meeting these requirements. It
provides an overall picture of the risk situation and an assess-
ment of how effective the processes and overall system are.
GRC process
// RISK CONSOLIDATION GROUP
All participations are assessed according to quantitative and
qualitative features using a uniform selection process and classi-
fied according to risk criteria. In the current fiscal year, AUDI AG
and 17 subsidiaries carried out the GRC process in full.
Germany:
> AUDI AG
> Audi Akademie GmbH
> Audi Electronics Venture GmbH
> Audi Vertriebsbetreuungsgesellschaft mbH
> quattro GmbH
International:
> AUDI BRUSSELS S.A./N.V.
> Audi Canada Inc.
> Audi (China) Enterprise Management Co., Ltd.
> AUDI DO BRASIL INDUSTRIA E COMERCIO DE
VEICULOS LTDA.
> Audi Akademie Hungaria Kft.
> AUDI HUNGARIA MOTOR Kft.
> AUDI HUNGARIA SERVICES Zrt.
> Audi Japan K.K.
> Audi of America, LLC
> Audi Volkswagen Korea Ltd.
> Automobili Lamborghini S.p.A.
> Ducati Motor Holding S.p.A.
> VOLKSWAGEN GROUP ITALIA S.P.A.
The subsidiaries not included in the risk consolidation group
must meet minimum requirements for their risk management
system and internal control system.
Unexpected external factors in particular can cause a significant
change in the risk situation in a short period of time. All Group
companies are obliged to inform Central Risk Management of
these by means of ad hoc announcements. A significant change
in the risk situation has taken place either if there is a risk that
is a threat to the Company as a going concern or if critical
threshold values are reached or exceeded. Developments that
constitute a threat to the Company as a going concern include
risk-exposed business transactions, but also in particular finan-
cial reporting inaccuracies and breaches of statutory require-
ments that materially affect the net worth, financial position
and financial performance or may permanently undermine the
overall strategy of the Group companies. Priority is given to
defining preventive measures for limiting losses, providing
updated communication to the corporate bodies on the risk
situation, and examining whether an ad hoc announcement
meeting capital market requirements needs to be published.
// RISK IDENTIFICATION, ASSESSMENT AND
DOCUMENTATION
The individual risks reported under the GRC process are to be
evaluated by the risk managers in the respective divisions,
departments and subsidiaries. At this stage, they seek to estab-
lish the probability and the potential loss, considering the
corrective action and management checks already implemented
(net perspective). The relevance and plausibility of their find-
ings are scrutinized with the aid of more in-depth interviews.
Based on the process documentation, the independent auditor
assesses 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 in an appropriate manner,
and whether the monitoring system to be implemented is fit
for purpose.
Reporting
4
Risk identifi cation
2
Monitoring of
implementation and
e ectiveness
of the instruments
3
Subsequent actions
5
Selection
of relevant
companies
1