annual financial statement 2011 - conwert Immobilien Invest SE

Annual Financial Report 2011
Categories of risks
Six risk categories were identified within risk identification. These risk categories cover all
sources of risks and levels of effect relevant to the conwert Group. Individual risks were
identified for each category and summarised in a risk catalogue. The risk catalogue, together
with the group risk management guideline, serves the risk owners as a basis for exercising
the risk owner function. Based on the risk categories, the main risks, which are described in
the following, are dealt with:
Strategy
Risks which may result from the development of the strategy for the group, from the
implementation of the strategy, from strategic cooperations and investments as well as their
management including the investment structure and the organisational contracts fall under
the risk category “strategy”. Responsibility for the risk category “strategy” lies with the central
group function “Group Strategy” as the risk owner, directly incorporating the entire Executive
Board and the Chairman of the Administrative Board.
Therefore, ongoing market observation and monitoring of the group segments based on plan
values, continuous benchmarking and an active investor and public relations policy were
established in the conwert Group in order to counteract risks in this category. In addition, the
investment strategy of the conwert Group is clearly defined, with the economic parameters
set out in the investment guidelines both for the regions and the sectors. Investments of any
kind are subject to an adequate internal approval process depending on the investment
volume. Nevertheless, it cannot be ruled out that the conwert Group could indirectly be
jeopardised in its existence due to persisting developments that have adverse effects on the
overall economy.
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