Audi 2015 Annual Report Download - page 201

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES // REPORT ON POST-BALANCE SHEET DATE EVENTS
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/OVERALL ASSESSMENT OF THE RISKS AND
OPPORTUNITIES SITUATION OF THE AUDI GROUP
The Audi Group is managed on the basis of targets and oppor-
tunities, with the focus on a sustainable increase in value. The
Risk Management System and Internal Control System consti-
tutes a systematic approach that fundamentally ensures
transparency and effective management of risks.
The Audi Group is characterized by an attractive product range,
a strong brand image, a worldwide supplier and production
network, and an international customer structure. This
constellation enables us to hold our own even in a difficult
economic climate. Our Company’s clear financial strength and
the sound profit ratios of the Audi Group confirm this. We
thus secure the necessary scope for investment – today and in
the future – in new products, pioneering technologies and
services.
The overall risk and opportunity position for the Audi Group
arises from the individual risks and opportunities presented
above.
The most significant risk stems from the product develop-
ment and product creation process. Other significant risks
include the failure to meet technical targets laid down in the
specifications, meeting sustainability requirements and
certification.
Compared with the previous year, at the time of reporting the
Audi Group faces additional risks from the diesel issue, which
when aggregated represent one of the most significant risks;
attention is currently focused on managing these. The diesel
issue is indirectly included in the risks from product creation,
from the failure to meet technical targets, from sustainability
aspects and from meeting CO2 regulations.
Principal opportunities are offered by the renewal and broad-
ening of the product portfolio as well as the expansion of our
international market presence, especially in growth markets.
Furthermore, the continuing internationalization of the pro-
duction network creates further opportunities for us to capital-
ize on local sourcing, for example. Our expertise in the subject
areas of digitalization and connectivity as well as its applica-
tion in the form of viable business models can be listed as
further principal opportunities. Audi plays an important role
within the Volkswagen Group and is at the same time able to
exploit the synergies available to it in order to strengthen its
own competitiveness. These synergies are not limited to its
production network; they are also felt in other elements of the
value chain, such as in Research and Development.
The overall risk within the Audi Group has risen compared with
the previous year, against the backdrop of the diesel issue. On
the basis of the information currently known to us, there are
no risks that could pose a threat to material Group companies
or the Audi Group itself as going concerns.
REPORT ON POST-BALANCE SHEET
DATE EVENTS
There were no reportable events of material significance after
December 31, 2015.