Risk Management
We believe that responsible management of potential risks as well as opportunities is the basis of
any sound
corporate governance. Correspondingly, our risks and rewards policy is directed at creating
additional
enterprise value without exposing the company to any undue risks. We aim to achieve profitable
growth, while
also giving consideration to sustainability-related goals and targets.
Our risk–rewards culture is part of the corporate culture of BLG LOGISTICS and sets out both the
company’s
basic policy toward risks and opportunities and rules of conduct for managing them. This not only
underpins
our risk awareness when making operating decisions; it also forms the basis for developing effective
measures that allow us to implement CSR as a lever for opportunities.
In the reporting year, we further developed our risk management system with the objective of
creating a
fully integrated system, and taking legal requirements into account. From now on,
sustainability-related
short-, medium- and long-term rewards and risks are identified and can also be assigned to the
sustainability goals. Within the scope of a cross-divisional project, the groundwork was also laid
for
application of the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz –
LkSG),
which came into force on January 1, 2023. One focus here was linking risk management with supplier
management.
Responsibilities in connection with risk management organization
Risk management principles
In line with our risk strategy, the basic elements of the risk management system are rolled out
centrally
using a standardized approach to ensure coverage of clear risk accountability, and are described in
the
Group guideline on risk management. This leads to systematic and comparable risk identification and
documentation, risk analysis and assessment, risk control and monitoring as well as risk-related
communication and reporting. The overriding objective is to create a shared awareness and positive
understanding – both at management level and among the entire workforce – in managing operating
risks in
order to ensure the company’s risk-bearing capacity. The aim is to identify and assess risks, manage
and
monitor them efficiently through appropriate and effective measures, and ensure ongoing risk
reporting as a
basis for sound decision-making. In this way, risk management is intended to support the corporate
strategy
and contribute to achieving our corporate objectives.
Objectives of risk management
- Identify risks early and prevent crises and insolvencies (support continuity of
the organization)
- Improve planning reliability and risk costs through optimal risk management
- Sound preparation of operating decisions with risk analyses to improve the
company’s success
- Achieve sustainability-related corporate goals and monitor
sustainability-related risks taking into account the principle of dual
materiality
We firmly believe that a reliable risk analysis is the key to our corporate success. By identifying
risks
early on, we can make sound decisions to help us avoid or mitigate them. Accordingly, we develop and
integrate processes and tools that allow us to identify potential risk scenarios and respond quickly
and
decisively. In 2022, identified risks were addressed and followed up through local and central
measures.
As an integral part of corporate governance, risks and the corresponding measures are regularly
presented
and discussed in the respective management groups. The resulting risk report was submitted to the
Board of
Management on a quarterly basis and to the Supervisory Board at each ordinary meeting to provide
information on the overall risk environment.
Defined risk categories and current risk outlook
With regard to potential risks, we focus in particular on those that would have a noticeable effect
on the company’s financial position, financial performance and cash flows if they were to occur.
Furthermore, we draw on risk analyses to assess and subsequently adequately manage the impacts of
our business activities on people and the environment. We assign all risks to five defined risk
categories (see graphic). In doing so, we consider risks from the area of Environment, Social and
Governance (ESG) as being integrated into these categories. Both the risk assessment and the
derivation of measures are based on scenarios and take into account all known influencing variables.
With regard to the reporting year, the ongoing war in Ukraine continued to impact on our risk
situation. Particularly worthy of note was the rise in inflation and the associated increase in
risks from higher energy, personnel and material costs. Cyberattacks, to which numerous companies
again fell victim in 2022, represent a completely different but nevertheless significant risk. The
economic slowdown and ensuing restrained demand on the one hand, coupled with the difficult
availability of components and raw materials on the other, lead to fluctuating volumes in our
customer business. In the area of ESG we see both opportunities and risks – the topics associated
with this can have an impact on the entire risk situation, from financing to HR policy and
procurement.
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 2022 financial year.
