annual report - Kendrion

Report of the Board
Risks and risk management
>> Background
Kendrion promotes local entrepreneurship
at its companies and, logically, offers scope
to exercise the associated discretionary
powers. Kendrion actively conveys the
essential need to maintain a healthy
equilibrium between entrepreneurial spirit
and the extent to which risks are accepted.
Adequate risk management is an integral
element of good business practice. When
risks are made visible Kendrion’s managers
can implement adequate measures in their
everyday management that offer them
optimum control of the risks. Kendrion’s risk
management is not intended to eliminate
all risks entirely: seeking business
opportunities is not without risks.
Kendrion’s objective is to adopt an
approach to business risks that minimises
surprises and the impact of any surprises
that nevertheless occur, while always taking
account of the necessary balance between
risk exposure and costs.
decision-making. All companies are
logically confronted with business risks
during the pursuit of their operations.
Kendrion’s policy is focused on mitigating
the risks or, when possible and prudent,
hedging the risks without losing sight of
the company’s entrepreneurship.
The Executive Board wishes to emphasise
that risk management and control systems
– no matter how professional they may be –
can neither offer absolute guarantees that
the company’s objectives shall be achieved
nor entirely prevent material errors, loss,
fraud, or violations of laws or regulations.
Kendrion has a responsibility to put internal
controls and procedures into place and test
them to verify their adequate performance.
The local management is expected to be
fully aware of the operating risks and the
necessity for internal control procedures.
Kendrion has devoted structural attention
to the optimisation of the risk management
and control system as part of the everyday
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annual report 2011