Porsche 2012 Annual Report Download - page 129

At the same time, the results of risk mitigation
measures that have already been taken are incorpo-
rated into the monthly forecasts on further business
development in a timely manner. This means that the
board of management has access to an overall
picture of the current risk situation through the doc-
umented reporting channels during the year as well.
We are prepared to enter into transparent risks
that are proportionate to the benefits expected from
the business.
Continuous monitoring and enhancement
As part of the continuous monitoring and improve-
ment process, the internal control system and risk
management system of the Volkswagen group are
constantly optimized. In doing so, equal considera-
tion is given to both internal and external require-
ments – such as the provisions of the German
Accounting Law Modernization Act (BilMoG). Ex-
ternal appraisers support continuous development
of the control and risk management systems of the
Volkswagen group on a case-by-case basis. The
objective of monitoring and improvement is to
ensure the effectiveness of the internal control and
risk management systems. The results culminate in
both regular and event-driven reporting to the
board of management and supervisory board of
Volkswagen AG.
Specific risks faced by the
Volkswagen group
The following section explains the individual
risks arising from the business activities of the
Volkswagen group.
Macroeconomic risk
The Volkswagen group believes the biggest risks to
continued global economic expansion consist pri-
marily of unanswered questions surrounding the
resolution of the European and US debt crises and
the future institutional structures in the euro zone.
Imbalances in foreign trade and volatile financial
markets are also contributing to a high level of
uncertainty. Added to this are geopolitical risks
resulting from tensions in the Middle East and North
Africa, which could impact negatively on the trend
in energy and commodity prices.
Due to the persistent structural challenges in
the industrialized nations, a climate of uncertainty
remains in evidence in the international markets.
This is indicated by a lack of investment by busi-
nesses and hesitant lending on the part of commer-
cial banks. This has a considerable impact on the
Volkswagen group’s risk position.
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