TRATON promotes a risk awareness culture which is characterized by openness and encourages people throughout the Group to manage risks actively and transparently. Transparency is fundamental for dealing effectively with risks and avoiding blind spots, as risks which remain undetected may not be addressed properly and timely.
Enterprise Risk Management
Enterprise Risk Management (ERM) provides management with transparency regarding the TRATON GROUP’s current risk situation. It encompasses all organizational rules and measures to identify and assess concrete business risks from a broad range of categories. It ensures that all relevant risks are clearly assigned to an owner who monitors the implementation of appropriate risk response measures. Moreover, ERM serves as the core process for satisfying a variety of internal and external reporting obligations as well as fulfilling the legal requirements regarding an early risk detection system.
Internal Control System
Internal Controls System (ICS) is a recurring process for managing and monitoring systemic risks at a process level. It covers all prescribed procedures, methods, and measures that serve to provide reasonable assurance regarding the reliability of financial reporting and selected compliance topics (e.g., anti‑corruption, antitrust law, tax compliance or product compliance). ICS as a process comprises the selection of entities to be included (scoping), documentation of relevant control activities, assessment of control design and operating effectiveness, mitigation of identified control deficiencies, and management reporting.
TRATON Audit Commitee / Supervisory Board monitors the effectiveness of the risk management system and internal control system. It considers the most important risks of the TRATON GROUP on a quarterly basis.
TRATON Executive Board is responsible for the implementation of an adequate and effective risk management system and internal control system across TRATON GROUP. By acknowledging the risk inventory, the TRATON Executive Board ensures proper consideration of top risks and implementation of appropriate risk response measures.
TRATON Governance & Risk Board, – consisting of the CFOs, the heads of risk management and selected functional leaders – reviews and discusses the top risks and their countermeasures on a quarterly basis, and the overall effectiveness of the internal controls system.
Brand Board of Management is responsible for the implementation of an adequate and effective risk management system and internal control system across the respective Brand. It discusses, validates, and monitors the brand risk inventory and approves the brand top risks to be presented to the TRATON Governance & Risk Board.
Risk Responsible identify, assess, mitigate, and monitor all risks within the respective area of responsibility. Relevant risks are reported via the risk management system and form the basis for the risk inventory.
For further information regarding the TRATON risk management framework and its processes, please refer to the risk management section of Annual Report.