Porsche 2009 Annual Report Download - page 87

The third subsystem, the risk management
system at the level of Porsche SE, monitors the direct
risks of Porsche SE as a single entity, the risks at the
level of its subsidiaries and, as part of its integration
function, the indirect risks from investments. The di-
rect risks of Porsche SE as a single entity mainly
comprise the financial and legal risks that are typical
for a holding company.
The indirect effect of risks from the invest-
ments is taken into account by integrating the three
subsystems in one group risk management system.
Regular communication, in management talks among
other things, ensures that Porsche SE as the holding
company is informed directly of any risks to the com-
pany’s ability to continue as a going concern should
any such risks arise at the investments.
Porsche SE thus bears the responsibility for
monitoring its own risks and, moreover, draws to-
gether all the findings from the risk early warning sys-
tems of the Porsche Zwischenholding GmbH group
and Volkswagen group. It thereby ensures that risks
are aggregated, consolidated, monitored and man-
aged. The design of information flows and decision-
making bodies at group level guarantees that the ex-
ecutive board of Porsche SE is always informed of
significant risk drivers and the potential impact of the
identified risks so as to take suitable countermea-
sures. The audit committee and the entire supervisory
board are kept informed of the risk situation in regular
reports.
Based on the assessment of the independent
auditor, the risk early warning systems established by
Porsche SE for the Porsche SE group and at the level
of Porsche AG and Volkswagen AG for the Porsche AG
group and Volkswagen group respectively meet the
legal requirements of Sec. 91 (2) German Stock Cor-
poration Act (AktG). In addition, the financial services
segment in the Volkswagen group is subject to regu-
lar special audits by the Federal Financial Supervisory
Authority pursuant to Sec. 44 of the German Banking
Act (KWG) and other controls by the association’s
auditors .
Specific risks faced by Porsche SE
Due its function as a pure holding company
managing investments, Porsche SE faces mainly fi-
nancial and legal risks. Financial risks are managed
using a comprehensive liquidity and financial man-
agement system that constitutes the central compo-
nent of the integrated early warning system for the
detection of risk. Freely available liquidity is a signifi-
cant financial and risk indicator as it reflects both the
financing and the investment strategy and is therefore
included in the regular reporting.
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