DATEV has a powerful risk management system at its disposal that actively supports both the continued existence of the company as well as its future success. For this purpose, developments with the potential to have a detrimental effect on the cooperative are identified, evaluated, and counteracted with suitable measures early on. In accordance with the legal requirements the risk management system must meet in the management report, DATEV’s risk management system focuses on the cooperative’s wide variety of business processes. It is viewed as an integral component and put into practice through planning and controlling processes standardized throughout the company, management tools such as quality and environmental management as well as internal auditing activities.

Risk Management System

The cooperative’s risk management system is a company-wide, standardized, ongoing process for the early detection, evaluation, management, and documentation of risks. As such, employees and managers are provided with risk policy guidelines that serve as the standard for acting in a manner that adequately takes risks into account.

Risks to the company are systematically identified, classified into a risk category, and the potential amount of damage and the probability of occurrence are both determined. Dealing with risk includes determining suitable measures with the objective of limiting risk. The relative early warning indicators are to be updated regularly.

Using risk management software, all those involved in the process can access the systematized and transparently prepared risk data at any time. The cooperative’s Supervisory Board also reviews this on an annual basis.

Internal and external audits regularly confirm the proper documentation, monitoring, and management of risks to the company. The tools and methods used as part of the risk management process are continuously enhanced and improved in an ongoing manner.

Risk Inventory 2016

As in previous years, there was no significant change to DATEV’s risk situation in 2016. The overall evaluation did not result in any new assessment of the cooperative’s vulnerability to risks. The risks to the company – both individually and combined – do not pose any significant threat to the cooperative’s earnings, financial position, or assets.

Compliance

Adhering to laws and guidelines is one of DATEV’s top priorities. In addition to the internal control system and the risk management system, the compliance management system plays a role in preventing unintended violations of the law and quickly uncovering deliberate violations. With a binding code of conduct, a whistle-blower system for the named or anonymous reporting of legal violations, and further elements, DATEV has implemented a comprehensive approach to a compliance management system.