Risk Management

To identify early and manage risks is an important component of a company’s success. For this, TAKKT has developed effective systems used throughout the Group.

Active risk management
TAKKT continuously analyses the market and competitive environment of its divisions and companies. The Group also regularly tests its own potential for adjustment to possible changes. This systematic observation enables it to identify and assess opportunities and risks at an early stage. As a result of this analysis, TAKKT defines measures that can be applied in order to limit, manage or avert risks.

Another decisive factor in successful risk management is timely and comprehensive reporting. For example, the Management Board receives information on order intake and service levels for every company on a daily basis. In addition, the Group continuously analyses economic indicators such as changes in GDP growth rates, gross fixed capital formation trends or the development of purchasing managers’ indices. The Group can use this data to promptly identify factors that may have an influence on the realisation of its strategy and planning.

Internal and external auditors are an inherent part in the company’s risk management system. Their task is to monitor processes in all Group companies to assess their operational performance, efficiency and compliance with internal guidelines. Newly founded companies and acquisitions are immediately integrated into the controlling and risk management system. They have to meet exactly the same stringent requirements as the established companies in the Group.

Internal control and risk management system for the accounting process
TAKKT has extensive structures, systems and measures in place which safeguard the effectiveness and security of the accounting process, including the preparation of individual and consolidated financial statements. The internal control and risk management system is based on close cooperation between the companies’ directors and the TAKKT Management Board as well as the corporate accounting, controlling, finance, legal and internal auditing departments. Key features of the systems include a Group-wide four-eye-principle, consistent rules of management, Group-wide controlling as well as processes to anticipate risks which can impair strategic and operational measures and thereby jeopardise the realisation of the Group’s value and growth potential.

The internal control and risk management system is derived from the internationally recognised Internal Control – Integrated Framework issued by COSO (The Committee of Sponsoring Organizations of the Treadway Commission).

Accounting-related risks and controls are systematically documented, recorded and updated on a regular basis. The Management Board is responsible for establishing and overseeing the internal control and risk management system. TAKKT ’s reporting structures start at subsidiary level and finish with the Management Board, which is regularly informed about all developments and must approve essential measures. Internal controls are in place at all levels and every stage of the process.

TAKKT uses various instruments to ensure that the latest IFRS standards, other relevant legal requirements and internal guidelines are applied consistently throughout the Group. These include continually updated accounting guidelines, a standardised chart of accounts, a Group-wide schedule for the preparation of financial statements, various handbooks and a number of other mandatory guidelines. External experts are called in when necessary, for example when evaluating pension liabilities or producing reports on purchase price allocation in conjunction with company acquisitions.

In addition to this, certified data processing systems are used for order processing, book keeping, reporting and treasury. Together with central training sessions for the relevant users, they help with the process of quality assurance in accounting. Standardised, centrally administered IT systems are used to prepare the consolidated financial statements. For consolidation purposes, SAP SEM BCS is used at every level of TAKKT Group. A form-based data collection and collation instrument is utilised to prepare the notes to the consolidated financial statements. This is also based on SAP . A number of validations within the IT systems support the financial reporting process. The IT systems used for accounting are protected against unauthorised access. Systems are in place to segregate duties and manage change.

Local directors and auditors regularly verify that control systems and accounting regulations within the Group are utilised and complied with. Checks are also carried out by the corporate accounting department, the internal audit department and the group auditors.