Porsche 2009 Annual Report Download - page 99

Development risk
Porsche is constantly developing new prod-
ucts in pursuit of its sales strategy. In order to avoid
developing products that do not meet the needs of
consumers, Porsche conducts trend studies and mar-
ket surveys before making decisions on new vehicle
projects. Porsche hedges against potential breaches
of industrial property rights, which could lead to con-
siderable compensation claims, by conducting re-
search into worldwide industrial property rights when
developing new vehicles. In this way, it is possible to
quickly identify whether the industrial property rights
of third parties are affected.
IT risk
The failure of IT systems can cause consid-
erable losses if, for example, the production of vehi-
cles is interrupted. Although the likelihood of the IT
system failing is low, Porsche has introduced an
emergency and disaster contingency program which
duplicates important data and machines. The program
is continuously adapted to meet operating require-
ments. Sensitive data can also be misused due to
unauthorized access to data. In order to guard
against this, the group has detailed access authoriza-
tion concepts, as well as binding instructions for the
handling of sensitive data. There are also technical
countermeasures such as virus scanners and firewall
systems in place.
To minimize delays in production, the group
has an escalation model. If defined thresholds are ex-
ceeded – e.g. an unacceptably high number of vehi-
cles are on the assembly line in the wrong order – a
meeting of a certain group of persons is convened in
order to take appropriate countermeasures without
delay. This process helps to ensure that vehicles are
manufactured to plan.
Personnel risk
A positive image is crucial to any company.
The communication strategy of the group ensures
that communication and actions are decisive and pro-
fessional in the event of crisis scenarios or events
that could tarnish the company’s image. Porsche's
positive image as an employer, as revealed by sur-
veys, enables the company to find and keep qualified
personnel. The group combats the risk of qualified
specialists and management leaving the company tak-
ing their experience and knowledge with them by of-
fering attractive employment conditions and training
programs.
Litigation risk
Like any other company, group entities may
become involved in court or arbitration proceedings.
At present there are no proceedings which could have
a material impact on the economic position of the
group.
Quality risk
High-quality products are crucial to the com-
pany's image. The development department works
closely together with suppliers in order to achieve this.
In addition to economic benefits, this collaboration
also creates dependencies. Delayed deliveries or
even failure to deliver can quickly lead to a standstill
in production due to the “just-in-time” nature of parts
deliveries. The group’s risk management system
therefore prescribes the careful selection and moni-
toring of suppliers. A technical and business profile is
created, and the supplier’s creditworthiness is con-
tinuously monitored. The credit assessment enables
recognition of companies running the risk of insol-
vency at an early stage. Short development times and
pressure on costs place high demands on suppliers.
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