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2 Risk management
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 Sys-
tem is an important part of the risk manage-
ment system.
The process of risk management is governed
by the regulation “Autoneum risk management
system”, which was adopted by the Board of
Directors. The regulation defines the main cate
gories of risk, which serve as a basis of the risk
management, and the bodies that deal within
the Group with the various risk. In addition, the
regulation defines the procedures for detecting,
reporting and managing risk and the criteria for
qualitative and quantitative risk assessment.
The regulation defines the following main
risk categories: strategic risk, operational risk,
financial risk, capital risk, litigation and other
risk (e.g. political, legal, organizational, environ-
mental and work safety risk).
Besides the financial and capital risk (refer
to paragraphs 2.1 and 2.2 respectively), the
following risks within the main risk categories
are a focus of Autoneum:
• Strategic risk: This risk results on the one
hand from different markets in which
Autoneumis operating (local aspects, legal
regulations, degree of maturity of markets).
On the other hand, it results from the share
of the customers in Autoneum’s sales, as
well as from the technical and regulatory
requirements on Autoneum products.
• Operational risk: This risk results from the
technical development of orders until end
of production, from the need for cost-efficient
production and the possibility of interrupt-
ions in production.
• Environmental and work safety risk.
Strategic risk resulting from developments in
the relevant markets and of the products offered
therein is assessed as part of the strategic plan-
ning and the financial planning processes. Stra-
tegic risk and operational risk are regularly re-
viewed at the monthly meetings within the
Business Groups and with the CEO and the CFO
of the Group. These meetings also deal with oth-
er risks impacting actual performance against
budget, in order to identify and implement cor-
rective measures.
Risks resulting from acquisitions, divest-
ments or other major projects are monitored at
Group level within the framework of competen-
cies and approvals for the respective project.
Quarterly review reports were prepared for the
attention of the Board of Directors.
Specific risks are addressed by periodic
reports in dedicated bodies. Such reports cover
environmental and work safety risk at the
various sites, treasury risk and risk from legal
actions and compliance.
An aggregate review of all identified risks
and of the instruments and measures to address
them is performed on a semi-annual basis by
the Risk Council, consisting of representatives of
all Business Groups and corporate functions.
The review results are reported to the Board of
Directors and Group Executive Board.
2.1 Financial risk
As a result of its worldwide activities, Autoneum
is exposed to various financial risks, such as
credit risk, liquidity risk and market risk (foreign
exchange risk, interest rate risk and price risk).
Autoneum’s financial risk management aims to
minimize the potential adverse impact of the de-
velopment of the financial markets on the
Group’s financial performance and to secure its
financial stability. This may include the use of
derivative financial instruments to hedge certain
risk exposures.
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Autoneum
Financial Report 2016
Consolidated Financial Statements