Audi 2014 Annual Report Download - page 197

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES
>> 197
GRC process
// RISK CONSOLIDATION GROUP
All participations are assessed according to quantitative and
qualitative features using a uniform selection process and
classified according to risk criteria. In the current fiscal year,
the risk consolidation group defined by this process comprises
AUDI AG along with 23 other subsidiaries, which have carried
out the GRC process in full.
Germany:
>AUDI AG
>Audi Akademie GmbH
>Audi Electronics Venture GmbH
>Audi Vertriebsbetreuungsgesellschaft mbH
>quattro GmbH
International:
>Audi Akademie Hungaria Kft.
>AUDI AUSTRALIA PTY LTD
>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 HUNGARIA MOTOR Kft.
>AUDI HUNGARIA SERVICES Zrt.
>Audi Japan K.K.
>Audi of America, LLC
>AUDI SINGAPORE PTE. LTD.
>AUDI TOOLING BARCELONA S.L.
>Audi Volkswagen Korea Ltd.
>AUDI VOLKSWAGEN MIDDLE EAST FZE
>AUDI VOLKSWAGEN TAIWAN CO., LTD.
>Automobili Lamborghini S.p.A.
>Ducati Motor Holding S.p.A.
>Italdesign Giugiaro S.p.A.
>VOLKSWAGEN GROUP ITALIA S.P.A.
Subsidiaries that are not included in the risk consolidation
group must meet Group-wide minimum requirements for their
Risk Management System and Internal Control System.
The Audi Group uses a separate process to deal with significant
changes in the risk situation that may occur at short notice due
to unexpected external events, for example. A significant
change in the risk situation occurs if there is a risk that poses a
threat to the Company as a going concern or to its strategy, or
if critical monetary threshold values are exceeded. Other trig-
gers include inaccuracies in financial reporting and compliance
breaches. All Group companies are obliged to inform the Board
of Management of AUDI AG and the central GRC organization
of such developments by means of ad hoc announcements.
Priority is given to defining preventive measures for limiting
losses, communicating the updated risk situation to the corpo-
rate bodies and examining whether an ad hoc announcement
meeting capital market requirements needs to be published.
// RISK IDENTIFICATION, ASSESSMENT AND
DOCUMENTATION
The individual risks reported by the risk managers in the
respective divisions, departments and subsidiaries are evalu-
ated using the GRC process. The net perspective is adopted
here, in other words the probability of occurrence and poten-
tial loss are considered in the light of any corrective action
already taken. The appropriateness and plausibility of risk
reports are examined on a random basis in more in-depth
interviews conducted with the appropriate divisions and
companies. Based on the process documentation, the inde-
pendent auditor also assesses whether the Board of Man-
agement has taken appropriate measures for the early indi-
cation of risks in accordance with Section 91, Para. 2 of the
German Stock Corporation Act (AktG).
// MONITORING OF EFFECTIVENESS, ONGOING
EXAMINATION AND REFINEMENT
With regard to the BilMoG criteria, where corrective action
and management checks substantially reduce the risk, their
Selection of relevant
companies
(risk consolidation
group)
Risk identification
Monitoring of
implementation and
effectiveness of the
instruments
Reporting
Subsequent actions
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