As one of the world’s leading providers in the telecommunications and information technology industry, we are subject to all kinds of uncertainties and change. In order to operate successfully in this ongoing volatile environment, we anticipate potential developments at an early stage and systematically identify, assess, and manage the resulting risks and opportunities. We therefore consider a functioning risk and opportunity management system to be a central element of value-oriented corporate governance.
Comprehensive Risk and Opportunity Management
Our Group-wide risk and opportunity management system covers strategic, operational, regulatory, legal, compliance, and financial risks and opportunities for our consolidated and major non-consolidated entities.
Our risk and opportunity management system is based on the globally applicable risk management standard of the International Standards Organization (ISO). ISO standard 31000 “Risk management – Principles and guidelines” is regarded as a guideline for internationally recognized risk management systems. Our Groupwide risk management policy serves as the basis for a uniform risk management methodology.
In his function as Chief Risk Officer, the Head of Group Controlling is responsible for comprehensive risk governance, which is managed by a central department (Group Risk Governance, GRG) from within his area. He reports directly to the Chief Financial Officer.
Group Risk Governance is responsible for the risk and opportunity management system and the associated reporting system, in particular the Group risk report. The unit provides a standardized framework, reporting process, methodology and training for the entire Deutsche Telekom Group.
Decentralized Risk Assessment and Mitigation - Centralized Risk Consolidation
Each Group segment has designated contacts who identify, assess, and continuously monitor risks. Management takes potential opportunities into account in the annual planning process and continuously develops them further during business operations. All operating segments as well as the Group Headquarters & Group Services segment are connected to the central risk and opportunity management system of the Group via their own risk and opportunity management.
In accordance with the German Stock Corporation Act (AktG), the Audit Committee of the Supervisory Board of Deutsche Telekom AG monitors the effectiveness of the internal control system and the risk management system. GRG also reports to the Audit Committee and responds to all inquiries regarding the integrity of the risk management system.