RM System
Status: 2007 Registration Document
RM at EADS covers all types of risk such as operational, financial, strategic and compliance risks, quantifiable and unquantifiable risks, short-, middle- and long-term risks, and risks with financial, health and safety, and reputational implications. The RM system requires that all risks be identified and that their likelihood of occurrence and the possible extent of damage be assessed, usually in terms of their effect on operating profit. Early identification and professional management of these risks is fundamental to business success.
See “Risk Factors” for information on certain risks to which the Group is exposed.
The management of the Divisions, BUs and HQ departments is responsible for developing and initiating appropriate measures to avoid, reduce, or hedge the probability and/or impact of the identified risks. Information on risks is gathered and updated regularly to provide Division, BU and HQ management with an analysis of the significant risks within the Group, as well as with information on the activities initiated to mitigate or avoid such risks. This information is used for decision-making throughout the relevant EADS management processes. In addition, the evolution of major risks and the development of the countermeasures taken in response are monitored on a regular basis by Division and BU management, who in turn report to the Chief Executive Officer and Chief Financial Officer. Each year, corporate audit provides an independent review of the status of the RM systems in selected Divisions, BUs and HQ departments.
The RM system attempts to cover all risks to which EADS is exposed, including risks inherent in the day-to-day business processes of the Group. EADS’ IC system as described below seeks to provide reasonable assurance that process-inherent risks arising from the Group’s activities are managed effectively. The relevant risks are subject to a management discussion process at the Group level.
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