DHL 2005 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2005 DHL annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

Risk Management
Opportunity and risk control forms part of the Group management process
Risk management is an integral part of all Group decisions and business processes. e
variety of business activities performed makes it essential that opportunities and risks are
systematically identied, evaluated and managed across the entire enterprise. To ensure
that this is possible, the opportunities and risk management system is systematically in-
tegrated into the existing management and controlling processes. e close intermeshing
of the opportunities and risk information with the management and controlling instru-
ments enables the Group to guarantee the regular exchange of opportunities and risk
information between strategic and operational control and the management responsible
using standardized processes. Risk control uses the Group’s nancial control structures to
manage the information process. It denes standardized Group methods and procedures,
ensures that these are adhered to, and coordinates the regular implementation of the risk
control process within the Group.
Postbank’s risk control system is designed to meet the banking supervision requirements
laid down in the second consultation paper of the Basel Committee on Banking Supervision
(Basel II). Postbank is integrated into the Group’s opportunity and risk control process.
roughout the Group, risk control follows a clearly dened process whose content and
timing have been coordinated with the range of management and nancial control instru-
ments deployed. Risks are identied by considering events and developments within the
company or its environment that may lead to deviations from the nancial plan. Respon-
sibility for each opportunity and risk is assigned to a member of sta who assesses these
using scenario modeling, implements appropriate measures to take advantage of opportu-
nities or manage risks, and monitors these with the aid of suitable early-warning indica-
tors. e relevant information is communicated from the corporate divisions to Corporate
Controlling on a quarterly basis via the multi-level risk reporting system. Risk reporting to
the Board of Management takes into account interactions between individual opportuni-
ties and risks. Should new opportunities and risks and signicant changes in individual
items arise, they are also reported outside the xed reporting intervals.
e following paragraphs outline those risks that could potentially have a material adverse
eect on our net assets, nancial position and results of operations. However, these are not
necessarily the only risks to which the Group is exposed. Risks of which we are currently
unaware or which we do not yet consider to be material could also have an adverse eect
on our business activities.
Safeguarding against financial risk
e following details are based on the “Postbank at equity” scenario, as the nancial risks
of the Deutsche Postbank group dier fundamentally from the risks to the rest of Deutsche
Post World Net.
Item 51.1 in the “Notes“ section
Information on Postbank’s risks and financial
instruments is provided in item 51.1 in the
“Notes“ section.
Annual Report 2005
68