Risks arising from internal processes

Reliability and speed are key indicators of the quality of our logistics services. Quality can be compromised by any problems that may arise in our complex operating infrastructure with regard to posting and collection, sorting, transport, warehousing or delivery. We want to prevent interruptions in operations by taking preventive measures. These include a detailed emergency plan with fire prevention measures and backup operations in the event of malfunctions or damage. Moreover, since we render our services de-centrally in more than 200 countries, we regard the probability that the Group will experience significant downtime as low. Our insurance policies reduce potential financial impacts.

As early as 2005 we began formulating pandemic emergency plans and setting up an international crisis team. We want to minimise the risk of infection for our employees in the event of a pandemic and maintain our business operations.

Under our First Choice programme, we are rigorously aligning internal processes to customer needs. At the same time, we are also aiming to improve cost efficiency, which in some instances requires capital expenditure. Investment decisions on amounts in excess of €10 million are made by Board of Management committees. A lower threshold of €5 million applies to capital expenditure in Global Business Services and the Corporate Center. The Board of Management members are regularly informed of investment decisions so that they can identify significant risk early and take any necessary countermeasures.

As a service provider, we do not conduct research and development in the narrower sense. There are therefore no material risks to report in this area.