Risk Management Is an Integral Part of Corporate Management
Risk management is an integral part of corporate management at WACKER. As a globally active company, WACKER is exposed to numerous risks directly attributable to our operational activities. Starting from an acceptable level of overall risk, the Executive Board decides which risks we should take to utilize opportunities available to the company. The goal of risk management at WACKER is to identify risks as early as possible, to evaluate them appropriately, and to limit them through suitable measures. We define risks as internal and external events that have a negative effect on the attainment of our targets. Compared with the previous year, we made no fundamental changes to the existing risk management system in 2012. One new risk for our polysilicon business emerged in the shape of anti-dumping proceedings instigated in Europe against Chinese solar businesses, as well as the instigation of anti-subsidy proceedings against European polysilicon manufacturers by the Chinese government. The scope of consolidation for risk reporting purposes comprises all WACKER majority shareholdings as well as companies consolidated using the equity method.
As a specialty-chemical and semiconductor company, we have a particular responsibility to ensure plant safety and to protect health and the environment. All our production sites have coordinators who manage plant and workplace safety, alongside health and environmental protection. Our risk management complies with legal requirements and is a component in all our decisions and business processes. The Executive and Supervisory Boards are regularly informed about the current risk status in the Group and at each business division.
WACKER focuses on identifying, evaluating, managing and monitoring risks as part of a transparent risk management and control system for all company processes. The system is based on a defined risk strategy and an efficient reporting procedure. It involves the Executive Board regularly reviewing and enhancing our risk strategy, particularly with regard to our groupwide processes for strategic planning and reporting. The Supervisory Board’s Audit Committee receives regular briefings on existing risks from the Executive Board.
All corporate areas are integrated into the risk management system. It consists of three intermeshed aspects:
- Division-specific risk management, including corresponding early-warning systems
- Groupwide risk coverage
- Groupwide risk mapping