DHL 2008 Annual Report Download - page 90

Deutsche Post World Net Annual Report 2008
 e Group uses a so ware application to collate and communicate individual
risks.  is multi-level reporting system ensures that managers are involved across
various layers of the hierarchy, and the process is closely dovetailed with controlling
to ensure regular exchange between controlling and management. Central risk control
is organisationally part of Corporate Controlling and keeps the Board of Management
abreast of key opportunities and risks in each division.
Postbank’s risk control system complies with the bank-speci c regulatory requirements
in accordance with the Kreditwesengesetz (German banking act), the Solvabilitäts-
verordnung (German solvency regulation), the Liquiditätsverordnung (German liquid-
ity regulation) and the Minimum Requirements for Risk Management (MaRisk, laid
down by Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin, Germany’s federal
 nancial supervisory authority). Until the agreed sale of Postbank to Deutsche Bank,
Postbank remains integrated into the Group’s opportunity and risk control process.
 e risks set out in the following are those which we presently consider to have
a signi cant potential negative impact on our net assets,  nancial position and results
of operations.  ey are not necessarily the only risks to which the Group is exposed.
Our business activities could also be adversely a ected by risks of which we are cur-
rently unaware or which we do not yet consider to be material.
Risk categories and specifi c risks
Industry-specifi c risks shaped by general environment
Our business success depends critically on the  nancial health of our cus tomers.
 e uncertain economic outlook in the wake of the  nancial crisis poses considerable
potential risks for us and for the entire logistics sector. Many factors are at play here,
including whether individual countries put together economic stimulus packages and
what e ect these produce. It is therefore hard to say anything about the duration and
scope of the crisis.
 e  nancial impact of any drop in revenue is minimised by our extensive cost-
cutting programme. Starting in , the Group aims to lower indirect costs substan-
tially – by   billion by . We also plan to increase our share of important domestic
and international express and logistics markets.  e restructuring of our  express
business considerably reduces our cyclical risk in this hard-hit market.
Risks associated with the general business environment primarily arise from
the fact that the Group and its subsidiaries provide some of their services in a regulated
market. Our statutory exclusive licence was abolished in Germany on  January .
However, the Postgesetz (German postal act) has allowed exceptions enabling competi-
tors to operate within the weight and price ceilings laid down in our exclusive licence
from January  onwards. As a result, around   of the revenue generated by com-
petitors in , the last year of the exclusive licence, was within the weight ceilings
stipulated in the exclusive licence. By the end of the year, the regulatory authority
(Bundesnetzagentur – Federal Network Agency) had issued licences to around ,
competitors.
Note 51.1
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