Executive Board Evaluation of Overall Risk
The Executive Board evaluates the overall risk situation on the basis of information from the risk management system. The system compiles all risks identified by our divisions, corporate departments and regional entities. It is regularly reviewed by the Executive Board and discussed in Audit Committee meetings.
On September 7, 2017, a technical defect at the site in Charleston led to a hydrogen explosion that damaged a plant section there. Although production had to be shut down for several months, the incident had no notable financial impact, since the property damage and loss of production are insured. During 2017, there were generally no significant changes to individual risks. In our view, the overall risk level was roughly the same as a year earlier.
As of the publication date of this report, the Executive Board does not see any individual or aggregate risk that could endanger WACKER’s future in any material way. Market risks do still exist in the photovoltaic industry. But, thanks to our extensive product portfolio and sound regional footing, we see good opportunities for expanding our leading market positions and achieving further growth. We remain confident that WACKER is strategically and financially so well placed that we can take advantage of any opportunities that arise.