Identifying risks & exploiting opportunities
Entrepreneurial activity is associated with risks and opportunities. We pursue the objective of identifying risks and opportunities throughout the K+S Group in good time, assessing their financial impact on the net assets, financial position and results of operations as well as their non-financial impact and taking measures to avoid/reduce risks or to exploit opportunities. This is how we support the sustainable success of the company.
In addition, structured internal and external reporting on risks and opportunities is to be ensured. The following principles apply:
- No action or decision may entail a risk that could foreseeably jeopardize the continued existence of the company.
- A Group-wide guideline regulates the tasks and powers of those involved in risk management, the process itself and defines the requirements for risk and opportunity reporting.
- The central Risk and Opportunity Management Committee advises on general topics in this area and coordinates them throughout the Group. It also regularly analyzes the general suitability of the risk and opportunity management system and provides management with recommendations for action if adjustments are required.
- Structured internal and external reporting ensures continuous information and provides a precise basis for action and assessment.
A detailed description of the process for identifying, assessing, managing and reporting risks and opportunities, a description of risk management in relation to financial instruments (IFRS 7) and significant risks and opportunities can be found on page 119 of the 2019 Annual Report .