Monitoring of Risks and Opportunities

Formal monitoring of the strategic and functional risks, including corresponding mitigating measures, takes place once a year at Function Board and full Executive Board levels and subsequently in the Audit Committee of the Supervisory Board, in the latter case for both segments. Along with adherence to our risk policy principles, this feeds into every business decision taken at the various levels of our company.

In addition to the above monitoring, operational risks and opportunities are continuously monitored as part of the financial planning, forecasting, and reporting process at the local, regional, and central levels. This ensures that all sales and earnings effects regarded as relatively likely are directly and appropriately incorporated into our financial reporting, taking into account the measures implemented and planned (e.g., recognition of provisions). This is supplemented by a regular review of key financial figures for the Consumer Group companies, led by the Consumer Group Controlling function, Internal Audit, and other relevant controlling functions. The review is designed to enable potentially critical developments to be addressed swiftly and precisely with those involved and corrective action to be initiated where appropriate. Monitoring in the tesa Business Segment is carried out in line with the company’s own organizational structure.

The latest information on risk development is thus also fed into the management and planning systems of the corporate units regularly throughout the year and becomes part of the decision-making and control processes. By directly integrating the risk inventory and planning process, the risk management system is continuously developed further, and risk awareness is embedded throughout the company.