The RATIONAL risk management system
Professional risk management and the kind of sustained optimum performance that regularly im-prove the quality of a company are inextricably linked. That is why RATIONAL’s risk management system is being constantly developed and the quality of its early warning indicators continually improved.
Key components of RATIONAL’s risk management system include:
- The integrated planning process that involves all divisions of the company worldwide
- Comprehensive group reporting of all company processes and subsidiaries, that is analysed, commented on and assessed by Financial Control and quickly delivered to all decision-makers, to enable them to implement the necessary adjustment measures promptly
- Process descriptions for all divisions of the company, the quality and observance of which are assured worldwide by regular training courses and subsequent monitoring of success
- An internal audit, which provides an independent and objective snapshot of the current situation with regard to all processes, and assesses and weights any deviations from targets. The scoring system for both process risks and corporate risks is standardised, so comparisons can be made between the various processes with regard to quality and risk situation, and their development evaluated over time
- Benchmarks with threshold values for sales and marketing efficiency, receivables management, supply chain management and the quality of the service network, to assist the early identification of undesirable developments so that appropriate countermeasures can be promptly implemented. As well as making the risk situation more transparent, ranking companies in this way creates internal competition, the result of which is that the less efficient organisations learn from the “best” and the quality of the company is constantly improved
- A globally integrated treasury management system for optimum cash and currency management worldwide
- Customer satisfaction surveys conducted regularly in all the important markets, providing an external perspective on product quality, service quality and the company’s competitiveness
- Partner plans agreed annually with strategic suppliers and service partners and designed to increase productivity and reduce costs. Adherence to these plans is assured through regular reporting, auditing and certification
- A security concept for all sites that provides optimum protection for employees, plant, buildings and know-how. Dedicated standby teams and emergency plans make it possible to act quickly in critical situations
- IT security, which is particularly important to RATIONAL, with its many sites all over the world and its many mobile PC users. The safeguards and tools used in IT are continually updated, and are checked and evaluated by specialists from both inside and outside the company
- A comprehensive insurance concept that is adapted each year to the new security situation
- Regular strategy meetings between the Supervisory and Executive Boards, which minimise the risk of undesirable developments
The effectiveness and topicality of the risk management system is continually updated and adjusted through the internal auditing process. Also, external auditors check whether the Executive Board has taken the necessary steps required under § 91 Para. 2 of the German Stock Companies Act to ensure that developments that could put the existence of the company at risk are identified at an early stage.