Annual Report 2012 - Knorr-Bremse AG.

Management Report
31
Follow-up report
Report on risks and opportunities
No events with a material influence upon the assets, financial
or earnings position of the Knorr-Bremse Group at
the balance-sheet date have since taken place.
The Knorr-Bremse Group operates an established, multistage,
worldwide planning, reporting and controlling system.
Standard reporting periods and report contents
have been defined across the Group. These formal reports
are supplemented in greater depth by presentations on
routine and special subjects at monthly review meetings.
In addition, the Knorr-Bremse Group has put in place a
standardized risk management system at top management
level. This is based on a risk report that is discussed
at regular top management and Executive Board meetings
and used as a basis for introducing appropriate measures.
This ensures that the operational risk management
system is duly complemented at strategic level. In its entirety,
this control system has proved an effective, reliable
network for the early identification and remediation of
potentially undesirable developments.
Risk assessment and management also form an important
part of the process of describing, documenting, and
continuously improving business processes across the
Knorr-Bremse Group (Knorr Excellence model).
Business risks
The Knorr-Bremse Group is active in business segments
that for some years have been characterized by a dynamic
process of consolidation on the customer side. This has
resulted in powerful demand-side leverage, with corresponding
pressure on prices. Knorr-Bremse responds to
these factors with innovative products and systems, positioning
itself as a partner for long-term relationships that
target cost-effective solutions for the customer. The earlier
Knorr-Bremse is involved in the customer’s project as a
whole, the better the chances of attaining that target.
Regional commercial vehicle and rail vehicle markets are
subject to irregular cycles. Market volatility and fluctuating
growth can affect individual suppliers, market segments
or entire regions. As a globally active corporate
group, Knorr-Bremse is particularly exposed to the risks