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Risk Report
conSoliDateD MANAGEMENT REPORT / PERFORMANCE OF PALFINGER
Risks relating to the financial statement closing proceSS
The necessary use of estimates and judgements in the fields of non-financial assets, deferred tax
assets, measurements of inventories and receivables, provisions for pensions, severance payments
and anniversary bonuses, as well as provisions for guarantees and warranties have a direct impact
on the presentation of the Group’s assets and earnings. A uniform Corporate Manual defining the
fundamental principles of accounting and valuation used by PALFINGER ensures a standardized
process and thus minimizes the risk of using different processes within the Group.
An internal control system adapted to the Company has been integrated into the accounting
process. The basic cornerstones of this system, such as the segregation of duties and the four-eye
principle, have already been introduced. Audits carried out by the internal auditing department,
external consultants and the auditor ensure that processes are continuously improved and
optimized.
hUMan resources
PALFINGER regards its employees as the major factor in successfully achieving its objectives. Special
planning and ongoing staff reviews ensure the training of future junior management. In connection
with the ongoing volatility of markets, the development of flexible working time models remains an
important issue that will be given even greater priority in the future with a clear focus on maintaining
top-quality staff.
PALFINGER’s growth projects in Asia require that well-qualified staff from the main plants be
mobile. In order to accomplish this successfully, appropriate secondment programmes, also offering
post-return orientation, have been initiated.
Information technology
Most of the processes within the Company rely on IT. In particular, operational and strategic
management decisions depend on information generated by these systems. A failure of these
systems and processes poses a risk for PALFINGER. Intensive training programmes may cause higher
expenses in the short term. Internal and external experts maintain and further optimize the IT
infrastructure across the entire Group. PALFINGER also has a range of technical security and
protective measures in place to minimize the risks of misuse of data and data loss.
Summing up, the risks to which the PALFINGER Group is exposed are manageable and can be
controlled by adequate measures. Therefore, the continued existence of the Group is ensured.
palfinger Annual Report 2011
75