Mercedes 2015 Annual Report Download - page 133

140 B | COMBINED MANAGEMENT REPORT | RISK AND OPPORTUNITY REPORT
In order to ensure the complete presentation and assessment
of material risks and risks threatening the existence of the Group,
as well as the control and risk processes with regard to the
corporate accounting process, Daimler has established the Group
Risk Management Committee. It is composed of represen-
tatives of Finance & Controlling, Accounting, Legal and Group
Compliance, and is chaired by the Board of Management
Member for Finance & Controlling and Daimler Financial Services.
The internal auditing department contributes material
findings on the internal control and risk management system.
In addition to dealing with fundamental issues, the committee
has the following tasks:
– The GRMC defines and designs the framework conditions
with regard to the organization, methods, processes and
systems that are needed to ensure a functional, group-wide
and holistic control and risk management system.
– The GRMC regularly reviews the effectiveness and functionality
of the installed control and risk management processes.
Minimum requirements can be laid down in terms of the design
of the control processes and of risk management and neces-
sary and appropriate measures can be initiated to eliminate any
system failings or weaknesses identified. The measures
taken by the GRMC ensure that relevant risks and process
weaknesses that might exist are identified and eliminated
as early as possible.
However, responsibility for operational risk management
and for the control and risk management processes with
regard to the corporate accounting process remains directly
with the divisions, corporate functions and legal entities.
Reports regarding the current risk situation and the effective-
ness, functionality and appropriateness of the internal
control and risk management system are regularly presented
to the Board of Management and to the Audit Committee
of the Supervisory Board of Daimler AG. Furthermore, the respon-
sible managers regularly discuss the risks of business opera-
tions with the Board of Management.
The Audit Committee of the Supervisory Board is responsible
for monitoring the internal control and risk management
system. The internal auditing department monitors whether
the statutory conditions and the Group’s internal guidelines are
adhered to in the Group’s monitoring and risk management
system. If required, measures are then initiated in cooperation
with the respective management. External auditors audit
the system for the early identification of risks that is integrated
in the risk management system for its general suitability to
identify risks threatening the existence of the Group; in addition,
they report to the Supervisory Board on any significant
weaknesses that have been recognized in the internal control
and risk management system.
Risks and opportunities
The following section describes the risks and opportunities that
can have a significant influence on the profitability, cash
flows and financial position of the Daimler Group. In general,
the reporting of risks and opportunities takes place for
the individual segments. If no segment is explicitly mentioned,
the risks and opportunities described relate to all the
automotive divisions.
In addition, risks and opportunities that are not yet known
or classified as not material can influence profitability, cash
flows and financial position.
Industry and business risks and opportunities
The following section describes the industry and business
risks and opportunities of the Daimler Group. A quantification
of these risks and opportunities is shown in table

B.59.
Economic risks and opportunities
Economic risks and opportunities constitute the framework
for the risks and opportunities listed in the following categories
and are integrated as premises into the quantification of
these risks and opportunities. Overall economic conditions have
a significant influence on automobile sales markets. Their
development is one of the Group’s major risks and opportunities.
Like the majority of economic research institutes, Daimler
expects the world economy to remain within its rather below-
average growth corridor of 2.5 to 3.0% in 2016. Economic
developments in 2015 are described in detail in the “Economic
Conditions and Business Development” section of this
Management Report; growth assumptions for 2016 are explained
in the “Outlook” section E pages 79 ff and 152 ff.
Economic risks and opportunities are linked with assumptions
and forecasts on the general development of the individual
subjects. Overall, economic risks for the business environment
have tended to increase compared with the previous year,
and the opportunities for an improvement of the world economy
have slightly decreased.