report

39 Risk assessment according to the Swiss Code of Obligations
Financial risk assessment and management is an integral part of the Charles Vögele
Group-wide enterprise risk management and is governed by policies reviewed by
the Board of Directors. The policies provide guidance on operational risk limits and
monitoring procedures. Such monitoring procedures contain regular review of
accounting policy, significant accounting matters, and items requiring significant
management judgments and estimates. The implementation of the accounting
policy, the adherence to the regulation and the monitoring on a daily risk basis are
carried out by the relevant financial departments. Regular reporting on the review
of the financial risk situation is performed by the relevant accounting and controlling
functions.
Charles Vögele Group has established a fully integrated risk process that captures
and evaluates the Group’s most important external and internal risks. The key risks
are entered in a risk matrix that shows both the potential degree of impact and
likelihood of each individual risk. Based on the company’s risk tolerance, Group Management
either initiates measures to reduce the degree of impact and/or the likelihood
of the risk occurring, or deliberately takes on specific risks. Group Management
periodically evaluates and updates the key risks. Charles Vögele Holding AG’s Board
of Directors evaluates the effectiveness of the risk management system every year.
40 Post balance sheet events
The present financial statements take into consideration events occurring between
the balance sheet date and 5 March 2012.
In February 2012, the existing 2007 syndicated credit agreement was replaced before
maturity by a new syndicated credit agreement with a credit line of CHF 255
million (old credit line: CHF 250 million). The duration of this new credit line ends in
September 2015. The interest rate is based on LIBOR plus a margin of between
100 and 375 basis points depending on financial ratios of the Group.
The 2011 financial statements, which were discussed between the Audit Committee
and Group Management and approved by the Charles Vögele Holding AG Board
of Directors on 5 March 2012 are presented to the Annual Shareholders’ Meeting on
4 April 2012 for approval.
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