Audi 2014 Annual Report Download - page 201

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES
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// PERSONNEL RISKS
The high standard of training of our specialists and managers
and their commitment ensure the enduring success of the Audi
Group. Our global value chain and demographic change mean
that we are fundamentally exposed to a risk of a shortage of
specialists. The focus of our human resources work is therefore
on targeted, demand-oriented personnel development and
workforce training. Along with promoting qualification in
automotive manufacturing, we are increasingly focusing on
developing expertise in key, forward-looking subject areas for
the automotive industry, such as digitization. The Audi Group’s
strong position worldwide as an employer occupies a pivotal
role amid intense competition for the best employees. Hand in
hand with our growing internationalization, for example as a
result of the expansion of our worldwide production network,
we promote our employees’ intercultural expertise. We have
developed special sponsor concepts and established local
training centers, among other things, for this purpose. The
goal is to permanently strengthen local expertise. In order to
encourage mobility among our employees, we are continually
optimizing the terms for impatriate and expatriate assign-
ments. Our new human resources planning process identifies
strategic key functions in Germany and internationally that
need to be filled with top people.
// PERSONNEL OPPORTUNITIES
Numerous national and international awards confirm that the
Audi Group is already among the world’s most attractive em-
ployers. Additional measures are designed to reinforce the
external perception of us worldwide as a top employer. This
creates the potential for our Company to attract and retain an
even larger pool of top talents.
// INFORMATION AND IT RISKS
Our Company’s worldwide presence necessitates a digitally
networked organization with maximum flexibility and secure,
fast data and information flows that are constantly available.
The professionalization of white-collar crime poses an increased
threat to IT security. This could fundamentally also lead to
unauthorized access to and manipulation of data at our Com-
pany, as well as disrupt our business operations. We address
this risk through the continuing refinement of our IT security
setup. One of its major components is the stipulation of Group-
wide security standards. In addition, risk analyses, security
audits and optimization projects have the goal of assuring the
continuity and security of internal processes. New systems are
subjected to increased resilience testing both before their
adoption and also while in use.
// INFORMATION AND IT OPPORTUNITIES
Innovativeness and efficient processes are major success factors
for Audi. The progressive digitization of the relationship between
customer, dealer and manufacturer offers an array of opportuni-
ties to improve our products and services, and develop innova-
tions. In the domain of connectivity, the dynamism of the auto-
motive industry offers many additional business opportunities,
for instance in the form of new applications but also seamless
connectivity with customers, the infrastructure and other road
users. Furthermore, there is efficiency potential in processes
along the entire value chain of our Company. The systematic
collection and analysis of data provides opportunities to add
value to and improve the efficiency of our automotive network.
The limiting factors are data protection regulations and the
readiness of our customers and business partners to place their
data at our disposal.
// FINANCIAL RISKS
Financial risks in the form of creditworthiness and liquidity
risks are of relevance for the Audi Group, as are interest rate,
exchange rate and commodity price risks. For the medium
term, we have concluded an appropriate level of hedging
transactions for purchases of commodities and for foreign
currency to effectively hold these risks in check. Considerable
exchange rate risks concern principally the U.S. dollar, the
Chinese renminbi, the Japanese yen, the British pound and the
Russian ruble. The strategic direction of our market activities is
the overriding priority. Where there are extreme developments,
as in the case of the Russian ruble, the Audi Group also utilizes
short-term measures, such as significant price adjustments.
Further information on the hedging policy and risk
management in the area of financial risks is provided
in the Notes under Section 36 “Management of
financial risks.”