BMW 2013 Annual Report Download - page 80

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80
18 COMBINED MANAGEMENT REPORT
18
General Information on the BMW Group
18 Business Model
20 Management System
23 Research and Development
24 Report on Economic Position
24 Overall Assessment by Management
24 General and Sector-specific
Environment
27
Financial and Non-financial
Performance Indicators
29 Review of Operations
47 Results of Operations, Financial
Position and Net Assets
62 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
Opportunities
63 Outlook
68 Risks Report
77 Report on Opportunities
81
Internal Control System and Risk
Management System Relevant for the
Consolidated Financial Reporting Process
82 Disclosures Relevant for Takeovers
and Explanatory Comments
85
BMW Stock and Capital Markets
linked to economic trends. If economies develop more
favourably than assumed in the outlook, there is a
chance that credit losses may be reduced and earnings
improved accordingly. Similarly, higher used car selling
prices could result in better-than-forecasted earnings
for the Financial Services segment. Positive interest rate
developments could reduce interest rate risks and there-
fore have a positive impact on forecast earnings. The
potential significance of opportunities arising in conjunc-
tion with the provision of financial services, in particular
opportunities related to residual value risks, are classified
by the BMW Group as material.
Overall assessment of the risk and
opportunities situation
No risks have been identified that could jeopardise the
BMW Group’s future existence. Based on the risks and
opportunities described above, expected probabilities of
occurrence and current business prospects, no individ-
ual or aggregated risks have been identified that could
endanger the BMW Group’s going-concern status.
Identified risks are considered to be manageable, but
could – just like opportunities – have an impact on the
BMW Group’s forecasts. The assessment of the overall
risk situation has not changed significantly compared
with the previous year. The BMW Group’s liquidity is
stable and all cash requirements are currently covered
by available funds and accessible credit lines.