Equity Story & Risk
Risk management system
Securing the Company ‘s continued existence
The risk management system at Adler Modemärkte AG secures the Company‘s continued existence and its profitability. It facilitates the identification of developments that might jeopardise the Company as a going concern early on, so that they can be countered effectively. At the same time, it aids the Company in leveraging existing opportunities to tap into new potential successes and to increase the value of the Company through a controlled approach to risk. By maintaining a balance between opportunities and risks, potential detriments to the success of the Company are minimised to the furthest extent possible.
The executive bodies of the Group have laid down basic rules for risk assumption. These include that ADLER may assume specific corporate risks, provided that opportunities associated with those risks are likely to increase the value of the Company.
The risk management system (RMS) is generally valid for all of the Company‘s divisions and subsi- diaries. Strategic and operational factors, events and actions having a significant impact on the existence and economic position of the Company are considered risks. External factors, such as the competitive environment, demographic changes, etc., that might prevent the Company from achieving its objectives, are also examined. The RMS covers strategic decisions made by the Executive Board as well as day-to-day business operations.
The primary medium for the RMS is the risk manual, which lays out the core issues of the Company‘s risk management regime. It defines risk areas, how risks are assessed and the organisational ap- proach to risk. Defining the process chain for handling risks ensures that risk areas are identified rapidly and that systematic countermeasures can be implemented at any time.
In terms of day-to-day business operations, risk management means weighing the identified oppor- tunities and the efforts involved in managing the associated risks. Risks assumed and the manage- ment thereof are continually monitored. A co-ordinated set of measures to mitigate risks requires a suitable framework with clearly delineated responsibilities. In this respect, risk management falls under the duties of the management.