Annual Report 2009/10 Excellence in Retailing - Douglas Holding

Information technology opportunities and risks
The dependency on the availability and quality of data in increasingly more complex
IT systems and the interfacing of individual companies present a significant risk potential.
In order to counter this, a group-wide IT safeguarding concept has been implemented.
Comprehensive precautionary measures, such as firewall systems and daily virus protection
safeguard the availability, reliability and efficiency of the systems and data.
The increasing requirements for data protection – among others, the amendment to
the Federal Privacy Act of 2009 – are met by the DOUGLAS Group conducting extensive
data protection training for all relevant employees and by access restrictions. Moreover,
a modern processing center and constant controls and monitoring of the systems as part
of emergency plans and actions assure the quality and safety of the processes concerning
data processing.
The extensive standardization of the IT infrastructure within the Group, the introduction
of standard cash register systems and the further development of merchandise management
allow for a much more effective processing.
Furthermore, the efficient application of the information technologies provides competitive
advantages. They can extend the range of the services in place to alternative distribution
channels, such as via the Internet.
Human resources opportunities and risks
Key components of the lifestyle philosophy include expert advice and outstanding
service. Employees who are inadequately qualified and have insufficient service orientation
pose significant risks. Another risk comes from experienced employees leaving the
company.
In addition to establishing a positive working atmosphere, the focus of human resources’
efforts is on offering company training and continuing education and in promoting
young management professionals through international management development programs.
Thus, top executives have the opportunity of receiving specific training and to simultaneously
exchanging their experiences across the divisions.
Opportunities arise in particular from the high attractiveness of the DOUGLAS Group
as an employer and high proportion of apprentices. Consequently, this should make qualified
young management professionals loyal to the company in the future.
Legal opportunities and risks
Significant legal risks could arise from possible violations against statutory requirements
or internal corporate guidelines.
Besides consistent compliance with the current legal situations in all relevant countries,
particular attention is also given to imminent legislative changes. The early inclusion
of internal and external local legal advisors helps to take the necessary steps.
The Compliance department also provides support in keeping the DOUGLAS Group
and its employees in compliance with the rules in effect. This not only includes the statu-
Management Report
Key results
Business activities and operating environment
Net assets, financial position and result of operations
DOUGLAS HOLDING AG
Subsequent events
Control system and success factors
Opportunities and risks situation
Statutory disclosures
Forecast and overall assessment
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