Porsche 2010 Annual Report Download - page 97

the group maintains an early warning system for the
detection of risk pursuant to Sec. 91 (2) German
Stock Corporation Act (AktG). The group’s risk
situation and risk management is reviewed and
documented annually in accordance with the re-
quirements of the German Act on Control and
Transparency in Business (KonTraG). Risk manage-
ment, which forms an operational component of the
business processes, is designed to identify risks in
a timely manner, assess their extent and, where
appropriate, take countermeasures.
Updating the risk documentation
Function-specific surveys of risks and meas-
ures carried out at certain divisions of the group
defined in advance are used to record and update the
potential risk position at appropriate rolling intervals.
In the process, the qualitative likelihood of occurrence
and the relative extent of any loss are assigned to
each risk identified considering the countermeasures
taken. The continuous updating of the risk documen-
tation is coordinated centrally by Porsche AG’s risk
management department in cooperation with the
planning department. The plausibility and adequacy of
the risk reports are examined in detailed interviews
with the divisions concerned.
The leasing and hire-purchase business oper-
ated in the group’s financial services division is addi-
tionally subject to regulatory supervision for finance
leases as defined by Sec. 1 (1a) Sentence 2 No. 10
German Banking Act (KWG). As part of the reporting
duties that apply for leasing companies, the group’s
financial services division has to fulfill certain formal,
qualitative and quantitative requirements. Implementa-
tion of the minimum requirements for risk manage-
ment is documented in a division-specific risk man-
agement manual and updated on an ongoing basis to
reflect changes in law and new requirements.
Adherence to process organization rules,
guidelines, instructions and descriptions is assured by
internal controls performed by the risk officers ap-
pointed in this area and by the internal audit function.
The risk management system
– goals and operation
The group’s risk management system is de-
signed to identify potential risks at any early stage so
that suitable countermeasures can be taken to avoid
any developments that might jeopardize the com-
pany’s ability to continue as a going concern.
The risk management system is an integral
part of the group’s structure and process organization
and is embedded in all of its daily business processes.
The opportunities and risks in the group are assessed
during the annual planning. Constant monitoring is
provided throughout the year by means of the report-
ing system. Deviations are analyzed, recorded, and
countermeasures initiated in the event of negative
developments. In addition, the risk management and
internal audit departments monitor and document the
risks and early warning systems. If new or changed
risks are discovered, these departments report im-
mediately to management and propose solutions. This
procedure allows negative trends to be identified
promptly and immediate countermeasures to be taken.
The documented reporting channels mean that man-
agement always has access to an overall picture of
the current risk situation.
Porsche Zwischenholding GmbH and the
Porsche Zwischenholding GmbH group are only pre-
pared to take transparent risks that are proportionate
to the benefits expected from the business.
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