Annual Report - Miba

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Risk Report
Risk Report
As a partner of the international engine and automotive industry, Miba is exposed to a
series of diverse risks in its day-to-day business.
The Group’s Management defines risk as the positive and negative deviations from corporate
objectives and key figures. This implies that potential losses may not be incurred
and that potential gains may not be realized.
Miba Group assesses current financial risk via Group Controlling. Uniform criteria are used
to measure economic success as well as deviations from target figures.
In particular, management structure, planning system as well as detailed reporting and
information systems form the basis of integrating organizational involvement into
operational procedures. Certain individual risks are controlled by service units at the corporate
level and secured to the required extent.
The corporation is insured against specific liability risks and losses. Their range is
continuously monitored.
Original financial instruments are accounts receivable and accounts payable (basic
transactions) and financial receivables and financial debt. The balance of original financial
instruments can be consulted in the Balance Sheet and the Notes.
In 2004/05, Miba only sparingly employed derivative financial instruments to hedge
against currency risk. In principle, derivatives are not held for the purpose of trading and
speculation. All the financial instruments used pertain to the current operational business
of the Corporate Group.