Porsche 2009 Annual Report Download - page 95

Updating the risk documentation
Function-specific surveys of risks and meas-
ures carried out at certain divisions of the group defined
in advance are used to record and update the potential
risk position at appropriate rolling intervals. In the
process, the qualitative likelihood of occurrence and
the relative extent of any loss are assigned to each
risk identified considering the countermeasures taken.
The continuous updating of the risk documentation is
coordinated centrally by Porsche AG’s risk manage-
ment department in cooperation with the planning de-
partment. The plausibility and adequacy of the risk
reports are examined in detailed interviews with the
divisions concerned.
The effectiveness of the Porsche Zwischen-
holding GmbH group’s early warning system for the
detection of risk was assessed based on this data
during the audit of Porsche SE’s consolidated financial
statements. Porsche’s early warning system for the
detection of risk was found to satisfy the legal re-
quirements of Sec. 91 (2) German Stock Corporation
Act (AktG).
The leasing and hire-purchase business oper-
ated in the group’s financial services division is addi-
tionally subject to regulatory supervision for finance
leases as defined by Sec. 1 (1a) Sentence 2 No. 10
German Banking Act (KWG). As part of the reporting
duties that apply for leasing companies, the group’s
financial services division has to fulfill certain formal,
qualitative and quantitative requirements. Implementa-
tion of the minimum requirements for risk manage-
ment is documented in a division-specific risk man-
agement manual and updated on an ongoing basis to
reflect changes in law and new requirements.
Adherence to process organization rules, guide-
lines, instructions and descriptions is assured by inter-
nal controls performed by the risk officers appointed
in the respective areas and by the internal audit func-
tion.
Goals and functioning of the
risk management system
The group’s risk management system is de-
signed to identify potential risks at any early stage so
that suitable countermeasures can be taken to avoid
any developments that might jeopardize Porsche
Zwischenholding GmbH’s ability to continue as a going
concern.
The risk management system is an integral
part of the group’s structure and process organization
and is embedded in all of its daily business processes.
The opportunities and risks in the group are assessed
during the annual planning. Constant monitoring is
provided throughout the year by means of the report-
ing system. Deviations are analyzed, recorded, and
countermeasures initiated in the event of negative
developments. In addition, the risk management and
internal audit departments monitor and document the
risks and early warning systems. If new or changed
risks are discovered, these departments report im-
mediately to the management of Porsche Zwischen-
holding GmbH and/or the executive board of Porsche
AG and propose solutions. This procedure allows
negative trends to be identified promptly and immedi-
ate countermeasures to be taken. The documented
reporting channels mean that management always
has access to an overall picture of the current risk
situation.
Porsche Zwischenholding GmbH and the
Porsche Zwischenholding GmbH group are prepared
to take transparent risks that are proportionate to the
benefits expected from the business.
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