SEAT Annual Report 2011 - Volkswagen AG

RISK DETECTION AND ASSESSMENTSEATRISKMANAGEMENTRISK REPORTMITIGATION AND CONTROL MEASURESRisk Management and Internal ControlThe Risk Management department isdesigned to pinpoint potential risksearly on and operates in an integratedfashion on the day-to-day processes ofthe company.Potential risks are reviewed, identifiedand documented periodically and incoordination with the other areas. Theanalysis process takes into account thelikelihood of the risks actually happeningand the scope of the potential damage,both material and immaterial – especiallyloss of reputation, legal repercussions orelse those impacting on strategy.The risk management system guaranteesthe implementation of mitigation measures,as well as the setting up of controls for thosemeasures to be properly applied.A systematic analysis of controleffectiveness and compliance is carriedout with a view to achieving stability andreliability of the controls put in place. Ata later stage the best risk-managementpractices and methodologies are analysedand documented, and work is then doneto standardize them across all processes.This management system enablesthe production of reports providing aclear and faithful picture of the currentsituation, an update of which is regularlysent to the Executive Committee and theBoard of Directors of SEAT. Additionally,the information gathered is alsointegrated into the Volkswagen Group’srisk management system.The risk-management team works inclose collaboration with the Compliancedepartment so as to detect possibleviolations of rules, regulations and norms,as well as providing support in the settingup of measures and processes aimed atenforcement.ComplianceThe remit of the Compliance departmentis continuous oversight, supervisionand management of both nationaland international legal requirements,in addition to enforcing SEAT andVolkswagen Group norms.The constantly-changing legal framework– embracing environmental, economic,fiscal, data protection, and laboursafety regulations – has a direct impacton numerous areas of the company’sactivities.In cooperation with the legal departmentand those areas affected, programmesare set up so as to guarantee compliancewith the pertinent rules and regulations.Any negative effects on the good nameof the company, financial losses, fines orcompensation issues are thus effectivelyavoided.Both the Executive Committee and theBoard of Directors of SEAT are fully awareof the added value accruing from goodcorporative practices. For this reason, bothbodies are provided with a regular updateof the relevant changes in regulations andnorms, as well as the implementationof plans of compliance and degree ofobservance of the regulations.In 2011, SEAT introduced a Code ofConduct, in line with the VolkswagenGroup’s compliance strategy as well asCorporate Social Responsibility | Annual Report 2011 | 79