DHL 2012 Annual Report Download - page 96

In the  ,  division we purchase transport services
from airlines, shipping companies and freight carriers rather than providing them our-
selves. As a result, in a worst-case scenario there is a risk that we shall not be able to pass
on all price increases to our customers. e extent of the risk essentially depends on the
trend in the supply, demand and price of transport services as well as the duration of
our contracts. Our comprehensive knowledge in the area of brokering transport services
helps us to minimise risk and take advantage of available opportunities.
Our   division provides customers in a variety of industries with solu-
tions along the entire logistics chain. Our success is highly dependent on our custom-
ers’ business trends. Since we oer customers a widely diversied range of products
in dierent sectors all over the world, we can diversify our risk portfolio and balance
out the incumbent risks. Moreover, our future success also depends on our ability to
continuously improve our existing business and to grow in our most important markets.
Risks arising from internal processes
Logistics services are generally provided in bulk and require a complex oper-
ational infrastructure with high quality standards. To consistently guarantee reliability
and on-time delivery, processes must be organised so as to proceed smoothly with no
technical or personnel-related glitches. Any weaknesses with regard to posting and
collection, sorting, transport, warehousing or delivery could seriously compromise
our competitive position. We therefore adapt all processes to current circumstances as
needed. We also take preventive measures to guard against disruptions or malfunctions
in our operational processes. Should disruptions nonetheless occur, contingency plans
will go into eect to minimise the consequences.
Overall, we regard the probability that the Group will experience signicant eects
due to business interruptions as low. In addition, some risks from interruptions to
business are reduced by our insurance policies. We furthermore use our First Choice
methodology to continuously improve our processes and align them even more closely
to the requirements of customers. Should this involve capital expenditure, the Board of
Management decides on any sums in excess of  million. Board of Management com-
mittees make decisions on investments of more than  million, with a lower threshold
of  million applying to Corporate Center / Other. e Board of Management members
are regularly informed of investment decisions so that they can identify any signicant
risk early and take the necessary countermeasures.
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.
Risks arising from information technology
Security of our information systems plays an important role for us. e Information
Security Committee, a subcommittee of the  Board, has dened standards, procedures
and guidelines based on  , the international standard for information security
management. In addition, Group Risk Management,  Audit, Data Protection and
Corporate Security monitor and assess  risk on an ongoing basis. e goal is con-
tinuous  system operation and the prevention of unauthorised access to our systems
and databases.
Strategic focus, page 
Deutsche Post DHL Annual Report 
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