Reporting 2021

Risk Management

We believe that dealing responsibly with potential risks and taking them into account appropriately in all business processes is the basis of any sound corporate management. At the same time, we also feel it is important to identify economic potential early on and seize this wherever possible. Our opportunity and risk policy enables us to do precisely this and to further develop the company and create value without exposing it to undue risks. Responsibility for the strategic direction of risk management lies with the Board of Management. In addition to defining risk policy principles this also includes the profit-oriented management of overall risk. The Supervisory Board is responsible for exercising responsibilities under company law. The Board of Management regularly informs the Supervisory Board in a standardized report concerning all decisions that are relevant in terms of risk. The adjacent graphic shows the allocation of responsibilities in connection with risk management organization.

Identifying, assessing and minimizing risks

Continuous risk controlling and a risk management system including reporting, which is tailored to the legal form of the company, allow us to identify potential risks at an early stage. In this context, we focus particularly on risks that arise as a result of strategic decisions and that may threaten the company’s continued existence. It is also of paramount importance to us that our business activities do not pose any risk to people, the environment and society. We categorize all risks into five defined risk areas. In addition to financial risks, we are exposed to market risks, political, legal, and social risks, strategic risks as well as performance and infrastructure risks. Potential risks associated with sustainability aspects of our CSR policy are mainly found in the latter three categories. To provide the highest level of transparency possible, our risk report states not only the subjective gross expected value, but additionally shows the respective value according to various evaluation scenarios (best – expected – worst case) and their probability of occurrence. Furthermore, the risk report describes the measures defined by our risk manager and their impacts on the risk. For more information about our opportunity and risk management, see the Financial Report 2021.

The coronavirus pandemic continued to present us with a high level of uncertainty. On the one hand, it is true that its knock-on effects have in the meantime been factored into business processes, the economy has adapted to the changed situation and the economic consequences are no longer as severe as they once were. However, significant disruptions to the global flow of goods and associated logistics processes may still occur in the future – for example as a result of new virus variants. We are also impacted by the challenges facing the automotive sector in particular due to a lack of intermediate goods, disruptions in supply chains, the switch to electromobility and weak demand during the pandemic. The substantial rise in energy prices at the turn of the year represents a significant new risk. Last but not least, the conflict in Ukraine could lead to global political turmoil, the impact of which on the economy and our business cannot yet be predicted.

The relevant management groups of the divisions are regularly notified of identified risks and measures to counter them. The Board of Management also receives quarterly reports and the Supervisory Board is reported to at its ordinary meetings. Four such meetings were held in the reporting year. No material risks with very likely serious negative impacts on matters relating to sustainability and the CSR policy were or are known to us for the 2021 financial year.

Responsibilities in connection with risk management organization

Responsibilities in connection with risk  management organization

Implementation of the Sustainable Development Goals

More about BLG’s fields of action, SDGs and sustainability strategy.


To SDG Stories