Report on Risks and Opportunities
(CONTAINS THE REPORT IN ACCORDANCE WITH SECTION 289(5) OF THE HGB)
Our Company’s long-term success also depends on how promptly we identify the risks and opportunities arising from our operating activities and how forward-looking we are in managing them. A comprehensive risk management and internal control system helps the Volkswagen Group deal with risks in a responsible manner.
In this chapter, we first explain the objective and structure of the Volkswagen Group’s risk management system (RMS) and internal control system (ICS) and describe the system relevant for the financial reporting process. We then outline the risks and opportunities arising in our business activities.
OBJECTIVE OF THE RISK MANAGEMENT SYSTEM AND INTERNAL CONTROL SYSTEM AT VOLKSWAGEN
Only by promptly identifying, accurately assessing and effectively managing the risks and opportunities arising from our business activities can we ensure the Volkswagen Group’s sustainable success and the systematic implementation of our Strategy 2018. The Volkswagen Group’s RMS/ICS aims to identify potential risks at an early stage so that suitable countermeasures can be taken to avert the threat of loss to the Company, and any risks that might jeopardize its continued existence can be ruled out.
Uniform Group principles are used as the basis for managing risks in a transparent and appropriate manner. These include
- promoting a culture of openness with regard to risks
- aligning the RMS/ICS with corporate goals
- weighing up risks and opportunities so as to be able to leverage opportunities where the related risks are transparent and manageable
- complying with rules (compliance, see also chapter compliance)
- ensuring the adequacy of the RMS/ICS in relation to the nature, scope and complexity of, as well as the risks involved in, the specific business activities and the business environment
- regularly reviewing the effectiveness and efficiency of the RMS/ICS.