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2.1 Risk management process
Autoneum maintains an Internal Control System
with the objective of ensuring effectiveness
and efficiency of operations, reliability of finan-
cial reporting and compliance with applicable
laws and regulations. The Internal Control System
is an important part of the risk management
system.
The process of risk management is governed
by the directive “Autoneum risk management
system”, which was adopted by the Board of
Directors. The directive defines the main cate
gories of risks, which serve as a basis of the risk
management, and the bodies that deal within
the Group with the various risks. In addition, the
policy defines the procedures for detecting,
reporting and managing risks, the criteria for
qualitative and quantitative risk assessment
as well as limits for reporting identified risks to
the appropriate management levels.
The directive defines the following main risk
categories: strategic risks (market and product),
operational risks, financial risks, litigation and
other risks (e.g. political, legal, organizational,
environmental and work safety risks).
Besides the financial risks (refer to para-
graph 2.2), the following risks within the main
risk categories are a focus of Autoneum:
• Strategic risks (market and product): These
risks result on the one hand from different
markets in which Autoneum is operating (local
aspects, legal regulations, degree of maturity
of markets). On the other hand, the risks result
from the share of the customers in Autoneum’s
sales, as well as from the technical and regula-
tory requirements on Autoneum products.
• Operational risks: These risks result from the
technical development of orders until end
of production, from the need for cost-efficient
production and the possibility of interruptions
in production.
• Environmental and work safety risks.
Market and business risks resulting from
developments in the relevant markets and of the
products offered therein are assessed as part
of the strategic planning and the financial plan-
ning processes. On the other hand, these risks,
as well as operational risks, are regularly reviewed
at the monthly meetings within the Business
Groups and with the CEO and the CFO of the
Group. As a part of these meetings, other risks
impacting actual performance against budget
are also dealt with, in order to identify and
implement corrective measures. Significant indi-
vidual risks are included in the monthly reports
to the attention of the CEO.
Risks resulting from acquisitions, divest-
ments or other major projects are monitored
at Group level within the framework of
competencies and approvals for the respective
project. Such projects are reviewed in the
monthly meetings of the CEO and CFO with the
Business Groups. Quarterly review reports
were prepared for the attention of the Board of
Directors.
Specific risks are addressed by periodic
reports. Such reports cover environmental and
work safety risks at the various sites, treasury
risks and risks from legal actions and legal com-
pliance.
An aggregate review of all identified risks
and of the instruments and measures to ad-
dress these risks is performed on a semi-annual
basis. The review results are reported to the
Board of Directors and Group Executive Board.
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Autoneum
Financial Report 2015
Consolidated financial statements