The energy sector is characterised by the mounting pressure of ever tougher competition and numerous technological advances. Business activities in this environment are always associated with risks. Identifying and documenting these risks early on, assessing them appropriately and taking steps to control, limit and/or minimise them is the function of MVV Energie‘s risk management.

Risk Management

Our risk-management system is integrated into the company’s entire organisational and operational structure, thus ensuring a high level of value-based awareness of risk among management. The system implements governmental regulations on control and transparency in the corporate sector (KonTraG) and is constantly being developed and adapted to ever-changing circumstances.

Within the framework of our risk-management system, together with our various departments we can identify, document and evaluate possible risks according to the potential damage that they could cause and the likelihood that they would occur. We have classified such risks into categories (A, B or C) to ensure that they are continually monitored and that appropriate steps are taken to control them. Reporting is the responsibility of our centralised risk management co-ordination. This is also charged with documentation and conceptional support for our risk-management system.

In accordance with legal requirements, we must submit a quarterly report on all risks to the Executive Board and a report on A and B risks to the Supervisory Board; the latter categories constitute 96% of the total weighted risk potential of the MVV Energie Group. Since September 30, 2003, database-supported software has been available for risk reporting, allowing us to simplify our risk-management system still further and to accelerate the reporting process. Functionality and workflows of the existing risk-management system are evaluated by audits conducted within the MVV Energie Group and by external auditors.

Within the framework of a decentralised structure, the various departments identify and document risks in the following categories to be monitored: Power trading/energy procurement, energy from waste plants, grids, production, market development for end consumers, energy services, participations, financial affairs and accounting, taxes, legal matters, personnel and information technology. The following are the most significant risks: