BMW 2005 Annual Report Download - page 60
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59
ucts, which is ensured by regular quality audits
and on-going improvement measures, helps to
reduce this risk.
Personnel risks
– As an attractive employer, the BMW Group has
found itself in a favourable position for many years
in the intense competition for qualified technical
and management staff. Employee satisfaction and
a low level of employee fluctuation also help to
minimise the risk of know-how drift.
– An ageing and shrinking population in Germany
will have a lasting impact on the conditions pre-
vailing in the labour, product, services and finan-
cial markets. Demographic changes will give rise
to risks and opportunities which enterprises will
feel more and more in coming years. The BMW
Group carefully reviews the effects of demo-
graphic change on operations, focusing in partic-
ular on the following issues:
– the creation of a working environment for the
future
– promotion and maintenance of the workforce’s
ability to perform with the appropriate set of
skills
– training
– increasing employees’ awareness of their re-
sponsibility to make personal provisions for the
future
– individual employee working life-time models
– The general increase in life expectancy also has
an impact on the pension obligations of the BMW
Group. The interest rate used to discount pension
obligations can also have a significant impact. In
accordance with IAS, this must be determined by
reference to market yields on corporate bonds
with comparable maturities. BMW AG recognises
full provisions for pension obligations to employees
in Germany based on actuarial valuations. The
funds remain in the enterprise and thus help to
finance on-going operations. Pension entitle-
ments in the USA and the remaining pension
obligations in the United Kingdom are funded
mainly by fixed-income securities with a high
level of creditworthiness and by investments in
stocks.
IT risks
– In the area of information technology, the BMW
Group undertakes various measures relating to
employees, organisational procedures, applica-
tions, systems and networks in order to protect
itself from unauthorised access or misuse of data.
Group directives for employees for handling data
and internal rules for the safe use of information
systems are in place across the Group. Internal
communication reinforces employee awareness
of security issues.
Amongst the technical measures taken are certain
standard activities such as the use of virus scan-
ners, firewall systems and access controls at op-
erating system and application level. These meas-
ures serve to protect confidentiality, integrity and
authenticity.