We see the continuous, reliable management of potential risks and opportunities as the basis for sustainable corporate performance. This involves identifying both potential risks and opportunities and optimising the risk/opportunity profile of our business activities. At the MVV Energie Group, we achieve this by means of a systematic and group-wide risk management system which forms an integral component of the Group's corporate management.
We have laid down guidelines for handling risks in the risk management handbook adopted by the Executive Board. These standards have been documented in a limit handbook used to determine and approve key risk figures. These handbooks provide all companies and shareholdings in Germany and abroad with binding regulations which are valid across the Group. Risk reports are usually provided to members of the Executive Board on a monthly basis and to the Supervisory Board on a quarterly basis. The Supervisory Board is informed immediately by the Executive Board in cases of particular urgency.
Our early warning risk identification system is sufficiently sensitive to enable us to identify any potential risks to the company's continued existence on the level of the Group or the individual companies at a very early stage. Detailed comparison of current risk assessments with our budget and forecast figures provides us with a great density of information, thus contributing to the efficient control of our group of companies. The assessment of the early warning risk identification system also forms part of the annual audit by both internal and external auditors.
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. Weather conditions and legislation/regulation represent the most significant exogenous risks to the business performance of the MVV Energie Group.
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