Opportunity and Risk Report

One cornerstone of our corporate management, with its focus on long-term success, is risk management. This enables us not only to meet legal requirements, but also to identify opportunities and risks at an early stage and manage them effectively. The system includes risk policy guidelines, responsibilities, analytical and evaluative procedures and key risk figures. The risk limit system reacts sensitively to any potential risks to the company’s existence. Such risks can therefore be identified at an early stage on both group and company level. The effectiveness of the risk management system forms part of the annual audit performed by the internal auditors. Moreover, the early warning risk system pursuant to § 91 (2) of the German Stock Corporation Act (AktG) is also audited by the auditors.

Our organisational structure facilitates the comprehensive and rapid analysis of risks and opportunities within the MVV Energie Group. Working within an established process, each unit with risk exposure reports risks and opportunities to the central risk controlling department on a monthly basis. This department then analyses and aggregates this data and initiates measures to avert, reduce or reallocate risk. Risk reports outlining the current risk and opportunity situation are provided to Executive Board members and individual companies on a monthly basis and to the Supervisory Board on a quarterly basis. The Executive Board is informed of special cases immediately and reports these in turn to the Supervisory Board. Within our risk aggregation framework we have classified six major types of risk.