PDF (10.9MB) - ThyssenKrupp AG

Management report on the Group
2.7 Management report on the Group Expected developments and associated opportunities and risks
Reporting
Reporting is
is is based
based on
on on § § 315
315 315 subs.
subs. 2 2 no.
no. no. 5 5
German
German GAAP
GAAP (HGB).
(HGB).
108 | 109
Risk management system established throughout the Group
Alongside the risk principles, the Group Policy Statement on Risk Management includes other binding
standards for the risk management process. In various reporting elements we communicate information on
operating and strategic risks in a standardized process which permits the identification, assessment, control
and monitoring of risks. Because it is integrated in the Group’s corporate controlling department, risk
management is also closely interlinked with planning and other reporting processes. Risk maps for all Group
entities are prepared with the help of a web-based reporting tool in which Group companies report on the
status of their risk situation using tiered threshold values, identify risk management measures and update
the early warning indicators for assessing risks.
Risk management
ThyssenKrupp Group
Group management
Compliance/
risk coordination Processes
Operations management
Executive Board
• Establishment of risk
principles and policies
• Focus on material risks
Risk Committee
• Risk monitoring
• Risk management
Corporate Center
Controlling & Risk
• Definition of Group
standards
• Risk reporting
• Integrated with controlling/
risk management in
business areas
Business Areas
• Identification, reporting
and forecasting of
opportunities and risks,
in particular changes in
material risks
Each business area updates its assessment of the opportunities and risks in the current fiscal year on a
monthly basis and provides information on any changes to material risks in the risk map. The material risks
– clearly defined at Group level on the basis of probability of occurrence and loss amounts - are discussed in
the Risk Committee and then communicated in a systematic and transparent report to the Executive Board
and the Supervisory Board Audit Committee.
This standardized and transparent risk management system was introduced by the Executive Board of
ThyssenKrupp AG for the entire Group and has proven itself to be efficient. In addition, ad hoc risks and
losses incurred are communicated directly to the risk management officers outside the normal reporting
channels.
To ensure the efficient monitoring of the risk management system, Corporate Center Internal Auditing carries
out regular audits worldwide. Their findings help us further improve the way risks are managed throughout
the Group. In addition we continuously optimize the tools and methods for registering and managing risks so
as to enhance the quality of the information generated and further strengthen the interlinking of internal
processes.
Key features of the internal control and risk management system
with regard to the Group accounting process
Our internal control system, defined as the entire body of coordinated principles, processes and measures
applied in the Company to ensure business and control objectives are achieved, is continuously optimized to
guarantee the security and efficiency of business management, the reliability of financial reporting, and
compliance with laws and policies.