Risk Management
Our global operations are shaped by
risks and opportunities. Understanding and managing those risks and
opportunities effectively is seen as a regular, ongoing management
responsibility for Symrise’s sustainable business development.
Our risk management system aims to timely recognize and successfully mitigate all potential risks that could endanger the achievement of our planned results or the continuity of our company. This way, our system enables us to identify risks promptly, assess them and put in place suitable countermeasures. We only enter into risks that are balanced by quality benefits expected from the business.
Whenever economically reasonable and possible, we have purchased insurance coverage to minimize the financial impact of some risks if they occur.
Risk management is not a separate organizational structure, but is integrated into our business processes throughout Symrise. Planning, controlling, and reporting mechanisms are fundamental parts of our early risk identification system. Workflows and guidelines ensure that management considers risks in decision making processes right at the beginning.
Symrise introduced a risk reporting policy for the Group that allows the Executive Board to have a current picture of the company’s overall risk situation. The policy enforces the written reporting of single risks twice a year.
The policy additionally demands the immediate notification of relevant risks independently of the scheduled reporting dates. This systematic approach to risk identification allows us, period after period, to make sure old risks (having been addressed by proper measures) no longer exist or their impact has significantly decreased.
All single risk reports collected are validated, if applicable, grouped, and then discussed with the Executive Board, who decides on additional action if necessary. The results of the above-mentioned reporting process and the early risk identification system are also presented to the Audit Committee.
Internal audit reviews the effectiveness of and adherence to internal controls and established policies as well as the efficacy of the company’s risk reporting system.
This way, Symrise conforms to the requirements of Sec. 91 (2) of the German Stock Corporation Act (AktG), and is committed to continually fulfilling its obligations in the future.
The following information relates to the reported risks for the 2008 planning period.