annual financial statement 2011 - conwert Immobilien Invest SE

INTRO |
| CONSOLIDATED FINANCIAL STATEMENTS | FINANCIAL STATEMENTS
MANAGEMENT REPORT
Risk management report
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.
Risk treatment covers both preventative and reactive measures including ad hoc-measures, which
are taken in the case of suddenly occurring new risks.
Risk communication serves for the structured collection, presentation and disclosure of information
within the framework of the reporting system by the defined risk owners to the Group
management.
The implementation of risk management and of the measures defined in the risk management
process is supervised as part of the ongoing monitoring. Monitoring also covers a regular review of
the functionality of the entire risk management system.
Central management functions
ADMINISTRATIVE BOARD
EXECUTIVE BOARD
RISK MANAGEMENT BOARD
Controlling,
risk management
and ICS
Regional managements
Risk management is conducted based on the function and on the structure of the Group, both
centrally by managers (risk owners) in the areas of group management and administration, and
decentralised by the regional managements in Germany, Austria and the other regions. The risk
owners meet regularly (quarterly) as the Risk Management Board at the Risk-Jour-Fixe, where
the main identified risks are dealt with and the monitoring is conducted if it falls under the competence
of the risk owners. The administration and coordination of the entire risk management is
carried out by the centralised management area “Controlling, Risk Management and ICS”, which
falls under the scope of responsibility of the CFO. Risk management as such is the responsibility of
the entire Executive Board, which reports to the Administrative Board on a regular basis.
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