annual financial statement 2011 - conwert Immobilien Invest SE

Annual Financial Report 2011
Risk management report
Risk management system
As an internationally operating group, conwert is exposed to a variety of risks. The group
therefore has a comprehensive risk management system in place, which complies with
international standards. This system is reviewed regularly for its functionality by internal and
external bodies to ensure that internal quality requirements and legal regulations are met.
The risk management system of conwert is developed further continuously and adapted to
changing external conditions and altered internal requirements. In the past financial year, the
catalogue of risks was revised and both the reporting processes and competences were
adapted. This way, an effective and efficient risk management is to be guaranteed for the
future.
The risk management system implemented for the entire conwert Group is defined as a
framework and based on concerted activities, methods and competences.
The risk strategy comprises the basic formulation of the understanding of risks, the
definition of the purpose and applicability of the risk management system as well as the clear
differentiation from other functions and activities aimed at realizing the economic targets of
the conwert Group. Like the overall strategy of the conwert Group, the risk strategy is
adapted regularly to changed framework conditions. Moreover, the risk strategy of the
conwert group provides that no incalculable risks are taken and that appropriate measures
are implemented for calculable risks to ensure that no effects that could jeopardise the
company’s ability to continue as a going concern are to be expected if such a risk
materialises.
Risk identification deals with defining risk areas, identifying individual risks as such and
determining areas of observation, in which risk must be identified in any case. In addition,
risk identification includes the identification of changes in the risk environment occurring in
the short term, or of new risks. Risk identification is a permanent process, which is carried
out in all areas of the group on an ongoing basis.
In risk assessment the nominal risk potential (“effect”) of individual risks is determined
taking into account the probability of occurrence. The nominal risk potential is the value
which has a significantly negative influence on the planned result for the period. Identifiable
risk correlations are taken into account. The aggregation of individual assessed risks, results
in a cumulative risk position, which is reduced to a risk net position by measures of risk
treatment.
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