The MAN Risk & Control Framework

Overview

The MAN Group has implemented an effective Group-wide risk management system that is tailored to its business needs and provides the necessary information on how to manage risks and exploit opportunities.

The MAN risk management system consists of the following core elements

  • Regular GRC Process,

  • Risk and Opportunity Management

  • Internal Control System, and

  • Continuous Controls Monitoring

which are summarized under the heading “MAN Risk & Control Framework”.

The components of the MAN Risk & Control Framework cover all important aspects of risk management and are closely interlinked with the MAN Compliance Program and the corporate planning and controlling processes.

The system generally distinguishes between systemic risks and event risks which are addressed comprehensively by the MAN Risk & Control Framework. While systemic risks can arise from the structure of the particular business model, event risks refer to specific business transactions.

In order to ensure that the risk management system is understood in the same way throughout the Group, MAN has defined risk and opportunity policy principles. The overriding principle is to exploit opportunities and to only enter into risks that they entail if it is expected that this will sufficiently contribute to increasing the Company‘s enterprise value. Risks that could jeopardize the Company‘s continued existence may not be entered into, or if unavoidable, must be minimized by taking appropriate measures.

A Group-wide applicable policy documents and communicates these risk and opportunity policy principles as well as the defined processes of the MAN Risk & Control Framework towards employees.

The organizational structure for the MAN Risk & Control Framework is based on the MAN Group’s management hierarchy. Therefore, roles and responsibilities have been put in place both at MAN Group level and in the subgroups, which ensures that the defined processes are implemented and the risk management system is continuously further developed and improved. In addition, cross-functional internal boards act as central supervisory, management, and oversight bodies.