For the MVV Energie Group, group-wide, systematic risk management constitutes an indispensable instrument for controlling risks and opportunities. As such, it forms an integral component in the management of the company.
The risk policies of our group of companies are based on the targeted and efficient exploitation of entrepreneurial opportunities, as well as on minimising or avoiding potential risks. The implementation of a central risk unit, which pools and analyses all information, ensures that any risks to the Group's continued existence are monitored and controlled on an ongoing basis. This unit is also responsible for the enhancement of the instruments used for the standardised recording, assessment, control and monitoring of risks. The introduction of a uniform software for recording risks and opportunities in a standardised format at group level was begun in 2005.
The principles of the risk management system are set out in a risk management handbook adopted by the Executive Board. The central components of this handbook focus in particular on the risk guidelines, which provide a binding definition of responsibilities, methods of analysis and assessment for business processes, as well as key figures for quantifying risks. The risk limit system is governed by the accompanying limit handbook, which documents budget/ actual variances and is crucial for the identification of risks at an early stage.
The Executive Board and the Supervisory Board are informed at regular intervals of the risk performance of the Group. The efficiency and effectiveness of the risk management system are reviewed by the group internal auditing department and form part of the annual audit.
The principal areas of risk which could impact on our business performance or on our net asset, financial and earnings position are set out below.
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