Page 135 - Annual Report KELAG Group 2018
P. 135

The risks are reported by the units and group entities to the
                                                                  Board of Directors regularly and as the need arises.

                                                                  Key objectives of the risk management system are to create
                                                                  transparency  in  order  to  avoid  risks  and  to  manage  risk
                                                                  exposures efficiently. Timely notification of all current risks
                                                                  is  essential  in  order  to  achieve  these  objectives.  A
                                                                  structured risk management process also helps to identify
                                                                  potential opportunities.

                                                                  Risks are dealt with consistently in accordance with the risk
                    Entrepreneurial activity means that opportunity is not
                    without risk. Consequently, the willingness to take and   management guideline and presented in a risk portfolio,
                    limit risks has to be defined.                which  is  broken  down  by  respective  probabilities  of
                                                                  occurrence and potential losses.

                    The  company  operates  an  integrated  risk  management
                    system that addresses risks from its own activities as well as   Identified risks are classified in the following risk categories
                    risks  from  its  market  environment. The  group-wide  rules   –  market  and  competitive  risks,  credit  risks,  operational
                    and minimum standards ensure a systematic and uniform   risks, financial risks, environmental risks and other risks.
                    risk management system. It is the strategic goal to raise risk
                    awareness  at  all  levels,  to  consider  risk  aspects   Risks are identified and managed for each business division
                    systematically  in  business  decisions,  to  improve   and  for  material  equity  investments.  The  main  risks  are
                    performance of internal control systems and reporting and   summarised and described in the following.
                    to establish a value-based risk culture at all levels of the
                    Group, beyond the scope of the requirements set by the
                    legal minimum standards.
                                                                  Risks  can  arise  during  the  execution  of  operational
                                                                  processes and from personal misconduct, in any business
                                                                  division  or  investment.  These  risks  are  minimised
                    The organisation of the risk management system that has   organisationally,  firstly  through  an  extensive  internal
                    been  implemented  is  designed  to  ensure  that  business   control  system  which  is  reviewed  and  improved  on  an
                    decisions and business activities are only executed within   ongoing  basis  and  secondly  through  an  established
                    defined risk limits. Risk management is an integral element   Business Continuity Management (BCM) system. The BCM
                    of the business structure and organisation of procedures.   process  includes  a  contingency  plan  which  is  constantly
                                                                  updated and practised through various test processes. In
                                                                  addition,  up-to-date  hardware  and  software  ensures  the
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