Audi 2015 Annual Report Download - page 205

CORPORATE GOVERNANCE REPORT
COMPLIANCE // RISK MANAGEMENT
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Training represents a central component of Audi’s preventive
approach to compliance. All new employees receive induction
training in compliance and are briefed on the Audi Code of
Conduct. The new training platform “Audi Qualifizierung”
offers face-to-face courses covering the topics of anti-
corruption, antitrust law, money laundering prevention and
outsourcing. The new web based training on anti-corruption
was also launched in 2015.
AUDI AG is connected to the Volkswagen Group’s global anti-
corruption system. This system is designed to prevent corruption
in the Company and reveal any instances of misconduct. Employ-
ees may contact external, independent lawyers 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.
In the light of recent developments, particular focus is being
placed on the structures, processes and distribution of respon-
sibilities in Technical Development.
RISK MANAGEMENT
It is the goal of the Audi Group to manage the Company in a
value-oriented and forward-looking way in the interests of our
stakeholders, and to adopt a responsible approach to risks. The
early identification, evaluation and effective management of
risks and opportunities from operating activities are priorities.
The Group-wide Risk Management System and Internal Control
System (RMS/ICS) serves to detect potential risks at an early
stage, develop appropriate countermeasures, avoid potential
losses and exclude any threat to the Group’s continued exist-
ence. The organizational structure of the RMS/ICS is based on
the internationally recognized standard of the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
The Audi Group adopts a holistic, integrative approach, bringing
a Risk Management System, Internal Control System and
Compliance Management System together in a single mana-
gement approach (governance, risk and compliance). Besides
identifying and assessing risk, the Risk Management System
and Internal Control System used by the Audi Group funda-
mentally 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, this system enables the Audi Group
to manage the key risks that it faces from a holistic perspec-
tive, taking account of both material and non-material criteria.
An internal Board Directive lays down the rules and standards to
be observed in this respect, thus ensuring a uniform approach
to the identification and evaluation of risks. Target groups are
kept abreast of the content and methodology of the Risk Man-
agement System through training courses, fact-finding events
or internal communication media such as the Audi intranet.
Opportunity management is also implemented in the opera-
tional 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 RMS/ICS on
the “Three Lines of Defense” model. This architectural frame-
work is recommended by the European Confederation of Insti-
tutes of Internal Auditing (ECIIA). The operational Risk Man-
agement Systems and Internal Control Systems at the level of
the AUDI AG divisions and subsidiaries – which form an inte-
gral part of the operational and organizational structure –
represent the first line of defense. The respective risk owners
are responsible for managing their risks and controls, and are
also required to carry out reporting. Findings from the opera-
tional risk management process are continuously being incor-
porated into internal planning and control calculations. The
risk officers are also required to report any material risks that
arise as a result of unexpected external influences without
delay in ad hoc announcements.