BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund OPPORTUNITY AND RISK REPORT RISK MANAGEMENT Borussia Dortmund's divisions are exposed to a wide The currency and detail of the regular risk reports variety of risks that are inseparably linked to the given to the governing bodies of Borussia conduct of business. Dortmund keep them informed of the Group's current risk profile. The sections below focus on possible future developments or events which could cause This ensures that the Company's decision-makers Borussia Dortmund to perform either better than have adequate flexibility to be able to monitor and expected (opportunities) or worse than expected manage risks. (risks). The respective impact of opportunities and risks are generally presented separately and are This year, the risk inventory procedure implemented not offset against one other. Generally speaking, with the objective of cataloguing and assessing all risks and opportunities are assessed over a risks has again proven effective as a management mid-length term of two years. All risks of loss to tool. Risks are identified, discussed and reviewed in which the Company is exposed (individual and consideration of current circumstances in cumulative risks) are monitored and managed one-on-one meetings or plenary sessions in order to within the risk management system. assess the current likelihood of their occurring and The consolidated group for risk management their potential consequences. purposes is identical to the consolidated group in the consolidated financial statements Each risk is given a qualitative rating of between 1 and 4, with 1 indicating a low level of risk and 4 A functioning control and monitoring system is indicating a very high level of risk. essential for identifying risks early and for assessing A risk impact assessment is carried out both before and counteracting them. It is the responsibility of the and after the identification and development of internal risk management system to monitor and countermeasures to reduce the risk. The risk impact control such potential risks. assessments are weighted before and after The risk management system is based on countermeasures based on a ratio of 1:2, with principles and guidelines laid out by the weighting prioritising the probability and management. These principles and guidelines are consequences of each risk after countermeasures designed to facilitate the early identification of any take effect. In mathematical terms, the risk impact irregularities so that appropriate countermeasures assessment (before countermeasures) is derived can be taken immediately. In order to ensure the by adding the probability of the risk and its highest possible level of transparency, risk consequences before countermeasures, while the management has been incorporated into the assessment (after countermeasures) is derived by organisational structure of the Group as a whole. adding the probability of the risk and its All departments and divisions are required to consequences, and multiplying this figure by two. immediately report any Company-relevant changes in the risk portfolio to the management. The risk management system is also an integral component of the overarching planning, steering and reporting process. 66