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METRO GROUP : ANNUAL REPORT 2011 : BUSINESS
→ GROUP MANAGEMENT REPORT : 11. Risk REPORT
614
11. Risk report
In its operating activities, MeTRo GRoUp is regularly
exposed to risks that can impede the realisation of its shortterm
objectives or the implementation of long-term strategies.
In some cases, we must consciously take controllable
risks to be able to exploit opportunities in a targeted manner.
We define risks as internal or external events resulting from
uncertainty over future developments that can negatively
impact the realisation of our corporate objectives. We define
opportunities as possible successes that extend beyond the
defined objectives and can thus positively impact our business
development. We consider risks and opportunities to
be inextricably linked. For example, risks can emerge
from missed or poorly exploited opportunities. Conversely,
exploiting opportunities in dynamic growth markets always
entails risks.
With this in mind, we consider our Company’s risk management
as a business management instrument that is geared
towards realising our corporate goals. It is a systematic,
Group-wide process that includes the identification of opportunities.
It helps the Company’s management to identify,
assess and control risks in order to exploit opportunities. as
such, opportunity and risk management is a uniform process.
Risk management renders unfavourable developments
and events transparent at an early stage and analyses their
implications. This allows us to put the necessary countermeasures
in place. as such, risk management is an integral
part of value-orientated business management and helps us
to improve our decision-making basis. We continually finetune
our risk management and increasingly integrate it into
our monitoring and control systems.
In this process we revised our risk management frame-
work during the reporting year. Key elements included,
in particular,
→ the definition of risk categories based on the target and
control system,
→ the introduction of process organisation regulations to
link the identification of risks to the pursuit of corporate
objectives,
→ an expanded centralised coordination of risk management
with the involvement of responsible functional managers,
→ p. 156
→ an increased dovetailing of risk management with corporate
strategy, planning and controlling as well as
→ the use of elements of the internal control system to
moni tor the risk management system.
Centralised management and efficient
organisation
MeTRo GRoUp’s risk management officer determines the
Company’s risk management approaches, methods and
standards. The risk management officer also coordinates the
underlying process. In this context, he continuously and
promptly informs the Management Board of MeTRo aG of
important developments in risk management, ensures the
Group-wide exchange of information and supports the continued
development of risk management in all sales divisions
and Group units. MeTRo aG’s central management functions
regularly discuss risk management methods and the current
risk situation through the Group committee for risks and
internal controls headed by the CFo of MeTRo aG. We conduct
an annual risk review to systematically record and
assess all essential risks across the Group according to uniform
standards. The risk management officer compiles the
results in a risk portfolio that provides the basis for determining
MeTRo GRoUp’s total risk and opportunities situation.
Based on this information, the risk management officer
prepares the risk report.
Group-wide risk management tasks and responsibilities are
clearly regulated and reflect MeTRo GRoUp’s corporate
structure. We combine centralised business management by
the management holding company MeTRo aG with the
decentralised operating responsibility of the individual sales
divisions. overall responsibility for the effectiveness of risk
management lies with the Management Board of MeTRo aG.
The sales divisions and Group companies are responsible for
identifying, assessing and managing risks. Key elements of
internal monitoring and control include effectiveness checks
in the form of self-assessments by the management and
review by the internal audits.
The supervisory Board of MeTRo aG is responsible for overseeing
the effectiveness of risk management. In compliance
with the provisions of KonTraG (the German Corporate sector
supervision and Transparency act), the external auditor submits
the Company’s early-detection system to a periodic
review. The results of this review are presented to the Management
Board and supervisory Board.