Audi 2015 Annual Report Download - page 198

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES
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>Class action and individual lawsuits in the USA and Canada
>Civil and administrative investigations by the EPA/CARB and
U.S. Department of Justice (DOJ)/Environment Canada, in-
cluding the civil complaint filed by the DOJ, on behalf of the
EPA, on January 4, 2016
>Criminal investigations
>Investigations and litigations by the attorney generals of
various U.S. states
>Other government investigations and inquiries
We believe that appropriate protection against risks was taken
in the form of provisions.
Audi is engaged in cooperative discussions with the authorities
in the United States and continues to work intensively on the
coordination of corrective measures. Furthermore, Jones Day,
the international law firm appointed by Volkswagen AG, over-
seen by the Supervisory Board of Volkswagen AG and
assisted by the auditing firm Deloitte is conducting an inde-
pendent investigation concerning the diesel issue at
Volkswagen and Audi. At the time of compilation of the Mana-
gement Report and the preparation of the Annual Financial
Statements/Consolidated Financial Statements, the Supervisory
Board and Board of Management have received a verbal initial
status report on the investigation at Audi regarding the V6 3.0
TDI engine issue. Further risks could subsequently arise for the
Audi Group as a result of the ongoing investigations, the pend-
ing proceedings and the discussions still in progress with the
U.S. authorities.
// PERSONNEL RISKS
Against the backdrop of our global value chain and the demo-
graphic change, we are exposed to the latent risk of a shortage
of specialists. As part of our human resources work, we there-
fore ensure clearly focused, needs-based human resources
development and workforce training. As well as providing
traditional qualification in automotive manufacturing, we are
increasingly creating and developing expertise in forward-
looking subject areas such as digitalization.
Furthermore, we face a fundamental risk of strikes. We seek
to reduce this risk by maintaining a regular dialogue with the
employees’ elected representatives and by providing attractive
working conditions in the Company.
// PERSONNEL OPPORTUNITIES
The Audi Group is already one of the most attractive employers
worldwide, as confirmed by many national and international
awards. 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.
However, the growing professionalization of white-collar crime
poses an increased threat to IT security. This could lead to
unauthorized access to and manipulation of data, as well as
to sabotage in our Company, thus limiting business operations.
We address this risk through the continuing refinement of our
IT security setup. The key approaches include Group-wide
security standards and regular simulations of extreme situations.
In addition, risk analyses, security audits and optimization
projects have the goal of sustainably ensuring the continuity
and security of internal processes. New IT systems are subject-
ed to increased stress testing both before their adoption and
also while in use.
// INFORMATION AND IT OPPORTUNITIES
Alongside innovativeness, efficient, IT-based processes are key
success factors for the Audi Group. The continuing digitaliza-
tion of the relationship between customer, dealer and manu-
facturer offers an array of opportunities to improve our prod-
ucts and services, and to develop innovations. In the domain of
connectivity, for example, there are additional business oppor-
tunities, including 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 opportuni-
ties to add value to and improve the efficiency of our automo-
tive network. However, the limiting factors are currently data
protection regulations and the readiness of our customers and
business partners to place their data at our disposal.
// FINANCIAL RISKS
Financial risks for the Audi Group may arise from changes in
interest rates, exchange rates, commodity prices and move-
ments in stock and bond markets. The management of finan-
cial and liquidity risks is organizationally the responsibility of
the Treasury area, which uses original and derivative financial
instruments to minimize these risks. The current risk situation
and the hedging strategies necessitated by it are agreed regu-
larly with the full Board of Management and actioned by
Volkswagen Group Treasury.