DHL 2006 Annual Report Download - page 77

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Other risks
e US Department of Transportation (DOT) has not yet completed a US citizenship
test for ABX Air Inc. ABX Air Inc. is an independent company that provides
transportation services for DHL. ere is no deadline for the routine citizenship test
by the DOT. We expect a positive outcome of this test that will conrm that ABX Air
Inc. is a US airline pursuant to US laws and DOT regulations. A similar review of
Astar Air Cargo Inc. was decided positively by the DOT in /.
External audits are currently under way at DHL Express (USA) and Airborne Inc. in
line with the US unclaimed property laws. ese laws state that abandoned assets
must either be returned to their rightful owner or transferred to the last known
owner’s home state or, if this is not known, to the state in which the company is
domiciled. In the course of its expansion, the Group has recognized signicant
goodwill. According to IAS, this goodwill must be subjected to an impairment
test at least once a year. If the value of the goodwill is determined to be impaired, an
impairment loss must be recognized.
As a service provider, we do not conduct research and development in the narrower
sense. ere are therefore no material risks to report in this area.
In view of the current geopolitical situation, the express market – and most of all the
air express business – harbors the risk of terrorist attacks, as a consequence of which
a rise in insurance premiums cannot be ruled out.
e Group insurance strategy provides for two options: Risks with high probability
of occurrence and low potential impact are covered through a captive insurer – an
insurance company which is owned by the Group and with which we aim to reduce
our insurance costs. Risks with low probability of occurrence and high potential
impact, such as air transport risks, are contracted out to third-party insurers.
Overall assessment of the Group’s risk position
In the past scal year, there were no identiable risks for the Group which,
individually or collectively, cast signicant doubt upon the company’s ability to
continue as a going concern. Nor are any such risks apparent in the foreseeable
future.
Risk Management 73
Deutsche Post World Net Annual Report 2006
Group Management Report