Daimler Annual Report 2011 - Alle jaarverslagen

3 | Management Report | Risk Report
Risk Report
Risks and opportunities
Daimler’s divisions are exposed to a large number of risks
which are inextricably linked with our entrepreneurial activities.
In order to identify, evaluate and deal consistently with those
risks, we make use of effective management and control
systems; we have combined these systems in a uniform risk
management system, which is described below.
Entrepreneurial activity primarily consists of creating and
utilizing opportunities in order to secure and strengthen the
company’s competitiveness. The divisions have direct responsibility
for recognizing and utilizing opportunities at an early
stage. As part of the strategy process, long-term opportuni ­
ties for further profitable growth are identified and included in
the decision process. Entrepreneurial opportunities are not
reported within our risk management system; they are identified
in the context of strategic and medium-term planning and are
followed up during the year in the context of periodical reporting.
Further information on this subject is provided on page
125 of the Management Report.
Risk management systems
(Report and explanation provided pursuant to Section 315
Subsection 2 Number 5 and Section 289 Subsection 5 of
the German Commercial Code (HGB))
The risk management system with regard to material
risks and risks threatening the existence of the Group
is integrated into the value-based management and planning
system of Daimler AG and the Group. It is an integral part
of the overall planning, management and reporting process in
all relevant legal entities, divisions and corporate functions.
It aims to systematically identify, assess, monitor and document
material risks and risks threatening Daimler’s existence.
Risk assessment principally takes place for a two-year planning
period, although in the discussions for the derivation of
medium-term and strategic goals, Daimler also identifies and
monitors longer-term risks. In the context of the two-year
operational planning – with the use of defined risk categories
– risks are identified for the divisions and operating units,
the major joint ventures and associated companies, and the
corporate departments, and they are assessed regarding
their probability of occurrence and possible extent of damage.
Assessment of the possible extent of damage usually takes
place with regard to the risks’ impact on EBIT. In addition,
risks for example for the Group’s reputation are assessed
according to qualtitative criteria. The reporting of relevant
risks is based on fixed value limits. The responsible persons
also have the task of developing, and initiating as required,
measures to avoid, reduce and hedge risks. Material risks and
the countermeasures taken are monitored within the framework
of a regular process. As well as the regular reporting, there
is also an internal reporting obligation within the Group for
risks arising unexpectedly. The Group’s central risk management
department regularly reports on the identified risks to the
Board of Management and the Supervisory Board.
The internal control and risk management system with
regard to the accounting process has the goal of ensuring
the correctness and effectiveness of accounting and financial
reporting. It is continually further developed and is an integral
part of the accounting and financial reporting process in all
relevant legal entities and corporate functions. The system
includes principles and procedures as well as preventive and
detective controls. Among other things, we regularly check
that:
– the Group’s uniform financial reporting, valuation and
accounting guidelines are continually updated and regularly
trained and adhered to;
– transactions within the Group are fully accounted for and
properly eliminated;
– issues relevant for financial reporting and disclosure from
agreements entered into are recognized and appropriately
presented;
– processes exist to guarantee the completeness of financial
reporting;
– processes exist for the segregation of duties and for the
“four-eyes principle” in the context of preparing financial
statements, as well as for authorization and access rules for
relevant IT accounting systems.
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