The continuous and reliable assessment, minimisation and avoidance of potential risks is of crucial significance to the solidity of the company’s performance in the long term. It is equally important for the company to identify and act on entrepreneurial opportunities and to exploit these for its further development.
The systematic risk management system in place across the MVV Energie Group ensures that risks and opportunities are controlled effectively. As such, this system forms an integral component of company management across the Group.
The implementation of risk policies is safeguarded by means of a risk management handbook adopted by the Executive Board, which sets out guidelines concerning the handling of risks. A limit handbook documents budget/actual variances and enables risks to be identified at an early stage. These handbooks are valid across the Group and are binding for all companies and shareholdings in Germany and abroad. Each of these risk carriers submits monthly reports on its risk situation to the central risk control unit on the basis of a standardised procedure. The risk control unit analyses this data, identifies measures to avoid, reduce or transfer risks and reports to the members of the Executive Board on a monthly basis and to the Supervisory Board on a quarterly basis. In special cases, the Executive Board is informed immediately.
Our early warning risk identification system reacts very sensitively, enabling us to identify risks, especially any risks to the Group’s continued existence, at an early stage. We compare the risks reported with budget and forecast data in order to achieve an even greater density of information and to manage our company efficiently. The effectiveness and efficiency of the risk management system we have developed are audited by our group internal auditing department. The assessment of the early warning risk identification system also forms part of the annual audit.
Our risk aggregation procedures make a distinction between six principal areas of risk which could affect our business performance and our net asset, financial and earnings position. This process takes no account of macroeconomic risks, given that the development of the overall economy is of less significance to the earnings of our electricity, district heating, gas and water segments than weather conditions.
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