Annual Financial Statement P&I Personal & Informatik AG April 1 ...

P&I Personal & Informatik Combined Management Report (Group and Cooperation)
income and financial situation. Our perceived aim is to become the most professional
software company in the European HR market.
7. Corporate Risk Report
In the context of its business activities, P&I is exposed to various risks which arise from, or
can be attributed to ongoing operating activities or changes in external conditions. We define
risks, in the broadest sense of the word, as the danger that we will not fulfil our financial,
operative or strategic aims as planned. In order to secure the success of the enterprise in the
long term, it is essential to identify and analyse risks, and to remove or limit them through
appropriate management strategies. We aim for a good balance between risk and
opportunity, taking on risks only if there is a high probability that the business activities will
raise the value of the Company.
7.1 Organisation of the risk management system
P&I has a comprehensive risk management system which enables us to detect and
analyse risks early on and take appropriate measures. The Group-wide precautions
are guided and monitored centrally by P&I AG in Wiesbaden. Here, risk reports are
prepared, further developments of the risk management system initiated and standard
requirements for reducing risk, applicable Group-wide, are worked out.
We are now in the nineth fiscal year where risk management software has been
supported by the Risk to Chance tool (R2C) which enables the active, web-based
involvement of all managers in all risk management procedures. As well as financial
data, the risk management procedure encompasses all activities of the organisation,
systematically and continuously following through the steps of identification, analysis,
evaluation, control, documentation, and communication.
A risk inventory is a system whereby previously identified and new risks are classified
according to type, following a formalised procedure, and evaluated according to the
probability of their occurrence and the degree of damage they might inflict.
7.2 Risk management systems and internal control systems with
regard to the
accounting process
P&I is obliged, as it is an equity market orientated business within the meaning of §
264d HGB and based on § 289 (5) HGB in conjunction with § 315 (2) No. 5 HGB, to
explain the important features of the internal risk management systems and the
internal control systems with regard to financial accounting listed in the management
report. A definition of this system does not have to be given under the law.
We believe that we have adhered to the principles, procedures and actions for
guaranteeing the correctness and reliability of the internal and external financial
accounting and also adhered to the significant legal regulations applicable to P&I in
accordance with the PS 261 Auditing standard issued by the ‘Institut der
Wirtschaftsprüfer in Deutschland e.V. (Institute of Auditors)’.
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