Financial Statements and Management Report - Thyssenkrupp

1.6 Management report Expected developments and associated opportunities and risks
and scheduling so as to safeguard the consistency of accounting practices in the Group and minimize scope
for discretion in connection with the recognition, measurement and statement of assets and liabilities.
In some cases individual decentralized units use the Group’s shared service centers to prepare their local
financial statements. Service center employees and all other employees involved in the accounting process
undergo regular training and receive support.
We control and monitor the relevant IT systems used in the consolidation process on a centralized basis and
perform regular system backups to reduce the risk of data loss and system failure. Automatic controls and
manual checks by experienced employees as well as custom authorizations and access controls are part of
a security system designed to protect finance systems against misuse.
Corporate Center Internal Auditing is also involved in the overall process in that it regularly checks the
efficiency of the internal control and risk management system in the accounting processes.
The overall package of processes, systems and controls provides sufficient guarantee that the Group
accounting process is carried out reliably and in compliance with IFRS, German GAAP (HGB) and other
standards and laws of relevance to accounting.
Utilizing opportunities and simultaneously managing risks
When we see and wish to utilize appropriate opportunities in connection with our strategic decisions, we take
risks responsibly in compliance with the requirements of the risk principles and make the necessary
provision to cover risks. Details of how we systematically identify, evaluate, manage and control
opportunities are presented in our opportunity report.
Risk transfer by central service provider
As central service provider, ThyssenKrupp Risk and Insurance Services again handled the Groupwide
transfer of risks to insurers in 2010/2011. The scope and structure of insurance cover is determined on the
basis of risk assessments in which insurable risks at the Group companies are identified, evaluated and
reduced or removed through asset-specific protection plans. Depending on the Group’s risk-bearing ability,
we agree appropriate deductibles for individual classes of insurance.
To keep risk prevention at a sustainable and appropriately high level, binding standards are in place for all
Group companies. These standards were developed by experts from all areas of the Group under the
leadership of ThyssenKrupp Risk and Insurance Services and are updated on an ongoing basis. Internal and
external auditors regularly check compliance with these standards.
To limit the risk of insurer insolvency, we spread the risk over numerous insurers taking into account the
ratings given to these insurers by recognized agencies.
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