The precautionary principle is realized as a guideline for risk prevention in principles and initiatives such as the UN Global Compact. For us, active risk management requires early identification, assessment, and handling of risks. To this end we have established management and control systems which are combined in a uniform Group-wide risk management system — also in keeping with the legal requirements. Our major risk categories include, among others, environmental and industry risks, financial risks, risks arising from warranties, legal risks as well as compliance and reputation risks within and outside the company.
Organization and responsibility. Our Group Risk Management Committee (GRMC) is a platform that ensures holistic risk analysis and recognition of significant and existential risks. It defines and designs the framework conditions for the Group-wide internal control and risk management system and reviews the effectiveness and functional capability of the deployed processes. The responsibility for operational risk management lies directly in the divisions, corporate functions, and legal entities. The respective responsible officers have the task of identifying and evaluating risks that are relevant for their unit, as well as for developing, implementing, and monitoring risk minimization and
Other initiatives established in the context of risk management are our Compliance Risk Assessment, the integrity reviews of business partners, environmental risk analyses at our production locations, and the consideration of consumer protection issues in our quality management system. The proactive approach is also supported by the systematic integration of environmental protection throughout the entire life cycle of our vehicles. In addition, other risks analyzed in the sustainability context include e.g. data protection and human rights.
Managing local impact. Risk prevention is also important for managing the local effects of our business activities. This applies, for example, to environmental protection in the production process: Our environmental management system defines structures and processes that ensure transparent reporting and clear areas of responsibility at all levels of our production facilities around the world. More than 98 percent of our employees work at locations with environmental management systems, which are audited and certified according to ISO14001. In addition, we regularly conduct environmental due diligence processes at our locations. Since 2011 we have also been working on a Group-wide risk management system for human rights.