GROUP MANAGEMENT REPORT Example Categorisation of risks Before countermeasures: In accordance with the recommendations under Probability 2 2+3=5 5 German Accounting Standard DRS 20, and to ensure Consequences 3 ease of reference, Borussia Dortmund divides its After countermeasures: risks into main categories. The nine defined main Probability 1 categories (strategic risk, personnel risk, Consequences 2 (1+2)x2=6 6 macroeconomic risk, competitive risk, liquidity risk, TOTAL 11 interest rate risk, credit risk, resources risk and ecological risk) are presented and explained in greater detail below. If the assessment of an individual risk falls within All 61 risks that could have a direct impact on the the top third of the scale (a score of 17 to 24), Company fall within these categories. In comparison Borussia Dortmund classifies it as a high-priority with the previous year (62 risks), the total number risk. Particular attention is paid to such risks, since was reduced by one risk that no longer meets the they are capable of having a material adverse and criterion of materiality. long-term effect on the Company's assets, liabilities, Three new risks (legal transgressions by professional financial position and profit or loss. There are players, lack of transfers/willingness to transfer, and currently 26 (previous year: 23) risks that are IT cyber risks) were added to the 23 risks that had classified as high priority. been classified as high-priority in the past period. No The currency and detail of the regular risk reports high-priority risks were removed. given to the governing bodies of Borussia Further to the notes on opportunities and risks in Dortmund keep them informed of the Group's the 2019/2020 Annual Report, the focus during the current risk profile. current reporting period (financial year 2020/2021) This ensures that the Company's decision-makers was primarily on the persistent impact of the have adequate flexibility to be able to monitor and COVID-19 pandemic, which continues to impact manage risks. almost all risk categories. The following is a discussion of the 26 high-priority risks in their respective categories. 155