2011 Annual Report - OTCIQ.com

50
Risk Report
Risk Management System
Risk Committee
Additional Reports on
E.ON Group Financial
Management (including
Liquidity)
Additional Separate
Reports on E.ON Group
Commodity and Credit
Risks
Risk Management, Monitoring, and Reporting
E.ON AG
Board of Management
Quarterly KonTraG Risk
Reporting
Financial Risks
Market Risks
External/Regulatory Risks
Operational Risks
Strategic Risks
Other Risks
Generation Renewables Gas Trading Germany Other
EU Countries
Our risk management system consists of a number of components
that are embedded into E.ON’s entire organizational
structure and processes. As a result, our risk management
system is an integral part of our business and decision-making
processes. The key components of our risk management system
include our Group-wide guidelines and reporting systems;
our standardized Group-wide strategy, planning, and controlling
processes; Internal Audit activities; the separate Group-wide
risk reporting conducted pursuant to the Corporate Sector Control
and Transparency Act (“KonTraG”); and the establishment
of risk committees. Our risk management system is designed
Audit Report
Audits
E.ON AG Supervisory Board
Audit and Risk Committee
Internal Audit
Planning and Controlling
Process
Earnings Report/
Medium-Term Planning
Russia Group Management/Other
to enable management to recognize risks early and to take
the necessary countermeasures in a timely manner. We continually
review our Group-wide planning, controlling, and
reporting processes to ensure that they remain effective and
efficient. As required by law, the effectiveness of our risk
management system is reviewed regularly by Internal Audit.