Similar to previous years, the Board of Management has initiated a so-called Corporate Risk Assessment to systematically evaluate the risks inherent to the Group’s strategic business objectives as well as the related risk management and control activities. For this purpose, a comprehensive risk classification system was used that contains pertinent information for each of the risk categories identified. This includes examples of – and contributing factors to – possible risk manifestations as well as current risk management and control activities to help mitigate these risks.
The risk categories identified were evaluated for their significance, defined as the degree to which risks within the respective risk category could adversely impact our ability to achieve our strategic objectives, as well as for the potential for improving their related risk management and control activities. This evaluation did not identify significant shifts in the Company’s overall risk profile and its main results have been included in the preceding overview of the main risks we face in pursuing our business objectives.
The structure and functioning of our risk management and internal control systems are discussed annually with the Supervisory Board.
No matter how much care is taken in setting up risk management and internal control systems, they are unable to provide absolute certainty with regard to realizing the company’s objectives, nor can they preclude material mistakes, losses, fraud, or infringements of legislation and regulations.
