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 Consequences 3 ensure ease of reference, Borussia Dortmund After countermeasures: divides its risks into main categories. The nine Probability 1 defined main categories (strategic risk, personnel Consequences 2 (1+2)x2=6 6 risk, macroeconomic risk, competitive risk, liquidity TOTAL 11 risk, 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 the top third of the scale (a score of 17 to 24), All 61 risks that could have a direct impact on the Borussia Dortmund classifies it as a high-priority Company fall within these categories. In risk. Particular attention is paid to such risks, since comparison with the previous year (62 risks), the they are capable of having a material adverse and total number was reduced by one risk that no long-term effect on the Company's assets, longer meets the criterion of materiality. liabilities, financial position and profit or loss. There Three new risks (legal transgressions by are currently 26 (previous year: 23) risks that are professional players, lack of transfers/willingness classified as high priority. to transfer, and IT cyber risks) were added to the 23 The currency and detail of the regular risk reports risks that had been classified as high-priority in the given to the governing bodies of Borussia past period. No high-priority risks were removed. Dortmund keep them informed of the Group's Further to the notes on opportunities and risks in current risk profile. the 2019/2020 Annual Report, the focus during the This ensures that the Company's decision-makers current reporting period (financial year 2020/2021) have adequate flexibility to be able to monitor and was primarily on the persistent impact of the manage risks. COVID-19 pandemic, which continues to impact almost all risk categories. The following is a discussion of the 26 high-priority risks in their respective categories. 67