Risk Management.
Risk management considerations play a central role in all decisions and business processes at Wincor Nixdorf AG. Comprehensive risk management, built into our activities in the form of management structures, company-wide standards as well as reporting and information systems, allows us to identify risks at an early stage. The associated control procedures enable us to promptly isolate and monitor both general and specific risks. Our objective in applying risk management is not only to manage and avoid risk but also to use it to take considered advantage of opportunities that arise and which may add value to our business, even where these are associated with an elevated risk potential. New areas of business, for example outsourcing projects or entry into new markets, are approached with the issue of risk in mind and appropriate approval procedures are defined via quantitative thresholds. Company-wide guidelines and checklists allow for structured analysis, enabling us to highlight potential risks and opportunities alike.
Risk management forms an integral part of our controlling and financial reporting systems. It includes an annual risk management report, monthly situation analyses/forecast reporting and project-specific variance analyses.
Risk management is integrated into the Group controlling process and functions on two levels. The first level consists of a Group holding company control function, which takes responsibility for identifying risk across the company, setting standards and developing short, medium and long-term strategic approaches to its management. On the second level, specific risk affecting individual subsidiaries and business units is identified and resolved at an early stage through key performance indicators and project analysis.
Compliance, Operational Efficiency and Security.
The Group internal audit function regularly reviews the internal control systems and business processes both of subsidiaries and head office functions for compliance, operational efficiency and security. Internal audit checks monitor compliance with directives, organizational security measures, profit-and-loss data, balance sheet indicators and contracts. Furthermore, internal audit works out proposals for optimization of process efficiency. These internal checks are regularly submitted to external review in respect of internal processes and quality as well as compliance with legal and industry regulations. The Group internal audit function reports as an independent body directly to the Board of Directors and the Audit Committee of the Supervisory Board.