SolarWorld’s corporate strategy underlies our opportunity and risk management system  Strategy and action based on which the Management Board defines our risk policy. We implemented a group-wide opportunity and risk management system that is integrated into our business processes. Moreover, all fully consolidated companies of the SolarWorld Group are incorporated into our opportunity and risk management.  Notes/Scope of consolidated financial statements and legal group structure Risks are identified and monitored in a decentralized manner by the management of the operating business units. On the basis of a standardized reporting system, monthly risk reviews are presented to the Management Board; any current risks and opportunities are immediately notified to the Board. In close alignment with Group Controlling, the Management Board is able to assess the impact of identified risks and opportunities on our net assets, financial position and results of operations without delay and to initiate counter-measures where required.

Group-wide bodies to identify, analyze and handle corporate strategy and performance opportunities and risks include our strategy meetings, in addition to Management Board meetings. At these meetings, which take place several times a year, the Management Board discusses any possible opportunities and risks with the managing directors and Board members of the subsidiaries – also with regard to corporate issues such as HR strategy and information technology. The Group Committee, which meets once a year, also involves the managing directors and the senior managers of the operating units. These bodies form a broad group-wide basis for our opportunity and risk management and enable us to rapidly implement the decisions taken at all management levels.

Opportunities and risks arising from the general economic conditions are determined by means of market, tendency and competition analyses in Investor Relations, Marketing and Distribution. They are evaluated and reported to the Management in the form of a monthly executive summary. In order to minimize ecological and social risks and tap economic opportunities, we have developed an integrated sustainability management system which reports directly to the Board in its function as a control and monitoring tool. We also operate an integrated group-wide quality and environmental management system  Interlinking of management tools  in order to counter risks in our process chain and make quality process and environmental standards transparent. Statistics on waste, emissions, waste water, power consumption and the use of consumables facilitate early detection and risk identification with regard to consumption data. The monitoring of laws and regulations, for instance laws and guidelines against insider trading, is the responsibility of our compliance officer, backed by legal advice from external lawyers. External specialist legal experts also provide integrated consultation on general legal risks.

In order to limit the remaining risks, SolarWorld has taken out corresponding insurance cover to minimize risks. The extent of the cover is regularly reviewed in order to keep pace with our steady growth. Our opportunity and risk management system is evaluated by our auditors on an annual basis.

We will only be successful over the long term if we seize opportunities while identifying risks at an early stage, analyzing them, and managing and controlling them accordingly. Considering the acceptable overall risk level, the Management Board decides whether any risks are taken in a controlled manner to seize opportunities. Where the decisions taken are of fundamental importance to the company, the Supervisory Board is also involved. We thus identify developments that might jeopardize the continued existence of our company at an early point in time.