Overall assessment of the risk situation

We identify and evaluate material risks on an ongoing basis using our risk management system. Appropriate action is taken to manage these risks and, as far as possible, bring them under control. Changes in material risks are monitored regularly at Group level. Currently, the DEUTZ Group has not identified any risks that either individually or in their totality could jeopardise the continued existence of the enterprise as a going concern. Unlike in 2017, quality issues do not represent a major risk factor for 2018, which is why we have not reported separately on quality risk here. Furthermore, we now categorise market risk as ‘low’, whereas we regarded it as ‘medium’ last year. By contrast, procurement risk is defined as significant to achieving the financial targets for 2018, which is why we have included it in this year’s report again. Other risk factors changed only marginally year on year.

Compared with the previous year, there is a greater focus on procurement in the overall assessment of the risk situation. However, the overall risk level remains essentially the same as in 2017. Because of the precautions that have been taken and our position in the market, we are confident in our ability to successfully manage the existing risks and overcome the resulting challenges.