The management of opportunities and risks forms an integral component of corporate management at the MVV Energie Group. The foundation for risk management is provided by a systematic approach adopted by the Executive Board on the basis of legal requirements. This sets out risk policy guidelines, responsibilities, analysis and evaluation procedures and key risk figures enabling both risks and opportunities to be managed efficiently.
The functionality and sensitivity of our early warning risk identification procedures are regulated by a risk limit system imposed by the Executive Board. The limits are set so as to facilitate the detection of possible erroneous developments at the earliest possible stage.
The functionality of the risk management system is analysed and evaluated by both internal and external auditors in their annual audits.
Moreover, our organisational structure is conducive to the rapid transfer of information and transparent analysis of risk and opportunity factors. Decentralised risk controllers work closely together with the central Group Controlling unit to provide a comprehensive presentation of the risks and opportunities facing the companies and subsidiaries of the MVV Energie Group. Opportunities and risks with the potential to affect earnings are monitored especially closely. The central risk controlling department aggregates the opportunities and risks reported and compiles a risk/opportunity profile on group level and for individual subsidiaries, taking due account of budget and forecast data.
The data thereby calculated is reported to the Executive Board on a monthly basis, with the Board being informed immediately in urgent cases. Moreover, the individual companies in the MVV Energie Group also receive their risk/ opportunity profiles on a monthly basis to enable them to control these directly. The Supervisory Board of MVV Energie AG is informed of the risk situation in quarterly written reports. In special cases, the Executive Board informs the Supervisory Board directly.
The most significant exogenous risks we face are still regulatory risks affecting electricity and gas grids and weather-related turnover risks mainly relevant during the heating period.
When analysing the uncertain factors which could impact on the business performance of the MVV Energie Group, we distinguish between six different risk groups, which we have presented below in order of significance.
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