Audi 2014 Annual Report Download - page 206

CORPORATE GOVERNANCE REPORT
COMPLIANCE // RISK MANAGEMENT
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The Compliance Management System (CMS) was further ex-
panded in 2014. The key focuses of the annual compliance
program were preventive measures in relation to anti-
corruption law, the awarding of external contracts, infor-
mation security and antitrust law. The compliance program is
an essential tool for the creation of a uniform starting point
for all compliance activities throughout the Audi Group.
AUDI AG is connected to the Volkswagen Group’s global anti-
corruption system. This system is designed to prevent corrup-
tion in the Company and reveal any instances of improper
behavior. Employees may contact external, independent law-
yers if they wish to report any suspicions or breaches of the
rules, and may also do so anonymously. Additionally, they also
have access to the Volkswagen Group’s anti-corruption officer.
For the purposes of raising employee awareness of compli-
ance issues further, the communication campaign launched in
2012 is being continued. Audi informs its staff of the relevant
issues using the intranet, brochures, films and articles in the
employee newspaper. Since 2013, newsletters have kept the
local compliance officers informed on current developments
in the area of compliance and best practices at other Audi
companies. An information letter has been designed in coop-
eration with the IT department that is aimed at keeping the
Audi workforce up to date on information security issues.
Training forms a central component of Audi’s preventive ap-
proach to compliance. All new employees receive induction
training in compliance and are briefed on the Audi Code of
Conduct. To ensure that the compliance training on offer is
tailored to the respective target groups, plans are in place for
the establishment of the Compliance Academy in 2015. This
will provide training on such matters as anti-corruption, anti-
trust law, money laundering and outsourcing. The newly de-
vised Learning Management Solution (LSO), known as the
Audi Learning Portal, will be in place from 2015 onwards,
supporting the professional organization and implementation
of training measures. This should ensure that the latest in-
formation on statutory and internal rules is always provided
on compliance risk areas.
RISK MANAGEMENT
We have set ourselves the goal of managing our Company in a
value-oriented and forward-looking way in the interests of our
stakeholders, and adopting a responsible approach to risks.
We work to ensure that the risks and opportunities associated
with our business activity are identified at an early stage,
assessed and effectively managed. A Group-wide Risk Manage-
ment System and Internal Control System (RMS/ICS) has been
in place for years now, serving to detect potential risks at an
early stage, develop appropriate countermeasures, avoid po-
tential losses and exclude any threat to the Group’s continued
existence. The organizational structure of the RMS/ICS is
based on the internationally recognized standard of the Com-
mittee of Sponsoring Organizations of the Treadway Commis-
sion (COSO). The Audi Group adopts a holistic, integrative
approach, bringing a Risk Management System, Internal Con-
trol System and Compliance Management System together in a
single management approach (governance, risk and compli-
ance). Besides identifying and assessing risk, the Risk Man-
agement System and Internal Control System used by the Audi
Group also guarantees the definition and implementation of
internal controls along the entire value chain. As well as help-
ing to comply with legal requirements, particularly in relation
to the accounting process, the Risk Management System and
Internal Control System enables the Audi Group to manage the
key risks that it faces from a holistic perspective, taking
account of both material and immaterial criteria. Relevant
guidelines and standards are anchored, for example, in an
internal Group-wide Board Directive, and ensure that risks are
recorded and assessed uniformly. The Audi Group communi-
cates the content and methodology of the Risk Management
System on an ongoing basis and in a way that is tailored to the
specific target groups, using training sessions, information
events and internal communication media such as the Audi
intranet. Opportunities management is implemented in the
operational and organizational structure of the Audi Group and
is closely aligned with our strategic objectives. Medium and
short-term potential opportunities are identified and opera-
tionalized by the divisions.
The Audi Group bases the systemic design of its Risk Manage-
ment System and Internal Control System on the “Three Lines
of Defense Model.” This system architecture is recommended
by leading specialist organizations such as the European
Confederation of Institutes of Internal Accounting (ECIIA).
The first line of defense is provided by the operational Risk
Management Systems and Internal Control Systems at the
level of the AUDI AG divisions and subsidiaries, which form an
integral part of the operational and organizational structure.
The respective risk owners are responsible for managing their
risks and controls, and are also required to carry out reporting.