The risk management system with regard to existence-threatening and other material risks is integrated into the value-based management and planning system of the Daimler Group. It is an integral part of the overall planning, management and reporting process in the legal entities, divisions and corporate functions. The risk management system is intended to systematically and continually identify, assess, control, monitor and report risks threatening Daimler’s existence and other material risks, in order to support the achievement of corporate targets and to enhance risk awareness at the Group.
The Daimler Group is exposed to a large number of risks that are directly linked with the business activities of its divisions or which result from external inﬂuences. A risk is understood as the danger that events, developments or actions will prevent the Group or one of its divisions from achieving its targets. At the same time, it is important for the Daimler Group to identify opportunities so that they can be utilized in the course of its business activities, thus safeguarding and enhancing the Group’s competitiveness.
Group Risk Management Committee (GRMC). The organizational embedding and monitoring of risk and opportunity management takes place through the risk management organization established at the Group. In this context, the divisions, corporate functions and legal entities are requested to report on concrete risks and opportunities at regular intervals. This information is passed on to Group Risk Management, which processes the information and provides it to the Board of Management and the Supervisory Board as well as to the Group Risk Management Committee (GRMC). The GRMC is composed of representatives of Accounting & Financial Reporting, the Legal Department, Compliance, Technical Compliance and Group Security, and is chaired by the Board of Management Member for Finance & Controlling/Daimler Financial Services. The internal auditing department contributes material ﬁndings on the internal control and risk management system.
Responsibility for operational risk management and for the risk management processes lies directly with the divisions, corporate functions and legal entities.
Reports regarding the current risk situation and the eﬀectiveness, 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 responsible managers regularly discuss risks and opportunities out of business operations with the Board of Management.
Comprehensive risk report
Local risk management plays an important role at our locations. Environmental risk management helps us recognize and address potential environmental risks at the Group’s production facilities. Due diligence assessments are regularly conducted for this purpose. Every ﬁve years, the associated teams visit all of the locations and evaluate them according to predeﬁned standardized methods. The results are reported to the plant and divisional managements and the company annually assesses the speciﬁed improvement measures. Our environmental management systems also enable clear areas of responsibility and transparent reporting at all of our production facilities around the world. Approximately 98 percent of our employees work at locations with environmental management systems certiﬁed according to ISO 14001.
The social and environmental impact of road traﬃc produces important business-speciﬁc risks for us. As a result of the diesel controversy, public criticism has been leveled against the automotive industry, including Daimler. We therefore must make every eﬀort to reduce the CO2 and pollutant emissions of our new vehicles through the use of our new engines and drive system concepts. Technologically enhanced retroﬁt solutions reduce the pollutant emissions of older vehicles in selected emission classes that are still being driven by customers.
Detailed information on non-ﬁnancial risks