Various precautions are taken to minimise the probability of occurrence for IT risks. We will have two main data centres in future – in Malaysia and the Czech Republic. Important applications and data are replicated between our data centres in real time. We have detailed emergency plans and disaster recovery centres in place. Due to the use of redundant systems, the risk of major business interruptions is considered to be low despite the closure of our data centre in the USA.
We continuously improve our security mechanisms to fend off unauthorised data access and data manipulation. Our IT is organised with data security as a prime objective. Plans and strategies to this end take into consideration the workforce, networks and applications. The success of IT security depends critically on employees observing security guidelines and we have therefore acted to raise risk awareness. Amongst other things, we have set up an Information Security Knowledge Centre – an interactive platform with key information on IT security. Thanks to the action taken, we do not expect any significant financial consequences from this risk.
Our services require the use of frequently updated and in some cases newly developed software. Delays and functional deficiencies can never be entirely avoided, however, when developing complex new software and putting it into operation. This risk is reduced by an efficient project management system spanning the entire process from software design to introduction. We expect only minor financial impacts in individual business units.
Management of financial risks
Information on financial risk management is provided in the Notes.
Risks from pending legal proceedings
Information on legal risks is provided in the Notes.
Other risks faced by the Group
Our insurance strategy separates insurable risks into two categories. The first category comprises risks with a high probability of occurrence and low individual cost. These risks are insured via what is known as a captive – an insurance company owned by the Group, which is able to cover such risks at a lower cost than external insurers. This category accounts for the majority of insurance expenses. Besides achieving major savings, this also makes for cost stability as the Group is unaffected by changes in the availability and price of outside insurance. The second category consists of risks that have a low probability of occurrence but could entail high losses, such as air transport risks. These risks are transferred to external insurers.
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