Risks are identified and assessed, and mitigated using suitable countermeasures. The Audit Committee of the Supervisory Board examines the appropriateness and effectiveness of the risk management system at least once a year.
The Bayer Risk Universe is regularly examined and updated if necessary, as was the case in The quantitative assessment reflects the possible loss of cash flows, whereas an earnings parameter was previously used.
Only the Scania brand was excluded. He regularly reports to the Board of Executive Directors on the status of implementation as well as on any significant results.
The three systems in place at Bayer are described in the following paragraphs. The ICS standards and the SOX standards are implemented by the Bayer Group companies and their compliance is overseen by the respective management teams.
It provides overarching standards, methods and tools, is responsible for the risk early warning system, steers the annual ERM process and ensures reporting to the Bayer Risk Committee and the Board of Management.
This process comprises defined structures and workflows implemented throughout the organization. Policy in the country organizations.
The principles underlying the various systems are documented in Group directives that are contained in our Management Regulations Margo database and are accessible to all employees via the Bayer intranet.
The early identification, evaluation, management and reporting of risks is the responsibility of the respective divisions, service companies and central functions.