DHL 2012 Annual Report Download - page 91

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Aggregate and report: e control units responsible collect the results, evaluate them
and review them for plausibility. If individual nancial eects overlap, this is noted
in our database and taken into account when compiling them. Aer being approved
by the department head, all results are passed on to the next level in the hierarchy.
e “aggregate and report” step is complete when Corporate Controlling reports to
the Group Board of Management on the signicant opportunities and risks as well
as any overall impact each division might experience. In addition, opportunities
and risks are aggregated for key organisational levels. We use two methods for this.
In the rst method, we calculate a possible spectrum of results for the divisions
and add the respective scenarios together. e totals for “worst case” and “best case”
indicate the total spectrum of results for the division in question. Within these
extremes, the total “expected cases” shows current expectations. e second method
involves use of a Monte Carlo simulation, the results of which are regularly included
in the opportunity and risk reports to the Board of Management at the divisional
level.
3 Overall strategy: e Group Board of Management decides on the system that will
be used to analyse and report on opportunities and risks. e reports made by
Corporate Controlling provide the Board of Management with a regular basis of
information for the overall management of opportunities and risks.
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Operating measures: As part of the strategy, the divisions determine the measures to
be used to take advantage of opportunities and manage risks. ey use cost-benet
analyses to assess whether opportunities should be taken and whether risks can be
avoided, mitigated or transferred to third parties.
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Control: For key opportunities and risks, early warning indicators have been dened
that are monitored constantly by those responsible. Corporate Internal Audit has
the task of ensuring that the Board of Management’s specications are adhered to.
It also reviews the quality of the entire opportunity and risk management operation.
e control units regularly analyse all parts of the process as well as the reports from
Internal Audit and the independent auditors with the goal of identifying potential
for improvement and making adjustments where necessary.
Internal accounting control and risk management system
(Disclosures required under section  , number  of the Handelsgesetzbuch
( – German Commercial Code) and explanatory report)
Deutsche Post DHL uses an internal accounting control system to ensure that Group
accounting adheres to generally accepted accounting principles. is system is intended
to make sure that statutory provisions are complied with and that both internal and
external accounting provide a valid depiction of business processes in gures. All gures
are to be entered and processed accurately and completely. Accounting mistakes are to
be avoided in principle and signicant assessment errors uncovered promptly.
e control system design comprises organisational and technical measures that
extend to all companies in the Group. Centrally standardised accounting guidelines
govern the reconciliation of the single-entity nancial statements and ensure that inter-
national nancial reporting standards (  s) are applied in a uniform manner
throughout the Group. All Group companies are required to use a standard chart of
accounts. Oen, accounting processes are pooled in a shared services centre in order
to centralise and standardise them. e  nancial statements of the separate Group
companies are recorded in a standard, -based system and then processed at a central
location where one-step consolidation is performed. Other components of our control
Deutsche Post DHL Annual Report 
Group Management Report
Outlook
Opportunities and risks
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