The Group uses a software application to collate and communicate individual risks. This multi-level reporting system ensures that managers are involved across various layers of the hierarchy, and the process is closely dovetailed with controlling to ensure regular exchange between controlling and management. Central risk control is organisationally part of Corporate Controlling and keeps the Board of Management abreast of key opportunities and risks in each division.

Postbank’s risk control system complies with the bank-specific regulatory requirements in accordance with the Kreditwesengesetz (German banking act), the Solvabilitätsverordnung (German solvency regulation), the Liquiditätsverordnung (German liquidity regulation) and the Minimum Requirements for Risk Management (MaRisk, laid down by Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin, Germany’s federal financial supervisory authority). Until the agreed sale of Postbank to Deutsche Bank, Postbank remains integrated into the Group’s opportunity and risk control process.

The risks set out in the following are those which we presently consider to have a significant potential negative impact on our net assets, financial position and results of operations. They are not necessarily the only risks to which the Group is exposed. Our business activities could also be adversely affected by risks of which we are currently unaware or which we do not yet consider to be material.

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