ÖBB Annual Report 2023

97 Group Management Report Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 52 This ensures that the Supervisory Board and Audit Committee of ÖBB-Holding AG and of the Group companies are provided with detailed information regarding the current opportunity and risk situation. The primary objective of the risk policy is to ensure the unrestricted safeguarding of the company’s activities. Accordingly, risks are only taken if their dimensions are assessable and are accompanied by an expected increase in earnings and company value. Ukraine crisis In view of the geopolitical developments in Ukraine, the ÖBB Group paid increased attention to possible influencing factors due to the existing conflict during the reporting period as part of the regular risk inventory. Group-wide (technical, personnel and procedural) measures to prevent sanctions violations were implemented and monitored. The Supervisory Board was informed about risks and the measures introduced as part of risk reporting. The uncertainties and effects of this situation that are relevant for ÖBB are able to be assigned to the existing risk categories analogous to the general risk inventory. Opportunity and risk management process This process is supported by risk management software. In 2023, the software used was reviewed for functionality and state-of-the-art capabilities in an extensive market survey and subsequently updated to the latest technical standard. Individual risks and opportunities are assessed not only by the technical experts but also in the Group-wide opportunity and risk platform. Reports are then prepared for the management bodies that show the most important risks and the corresponding countermeasures or opportunities. On this basis, the Supervisory Boards and the appointed audit committees of ÖBB-Holding AG and the Group companies are provided with comprehensive information on the current opportunity and risk situation. The most important opportunities and risks for the year 2024, none of which pose a threat to the company’s continued existence, are distributed among the individual opportunity and risk areas as follows: Strategy The potential consequences of future pandemics are taken into account across the Group as risks with regard to a possible deterioration in earnings and liquidity. The experience and knowledge gained from dealing with the Covid-19 pandemic will have an impact. The “Nordstern” programme is still being implemented and – building on previous years – is a key factor in the secure future orientation of the ÖBB Group. This transformation programme was developed with the involvement of all Group companies. It is intended to prepare the company for significant challenges and risks in the coming years, which are expected to result in particular from intensified competitive pressure and technological change. Defined measures for implementing the concept are taken into account in budget and medium-term planning. Regular monitoring of the strategic measures is performed. Increased attention is also being paid to the topics of “knowledge transfer” and “succession management”, with the generational change simultaneously acting as an opportunity to successfully position the organisation for the future. MR52 | OPPORTUNITY / RISK MANAGEMENT PROCESS Opportunities / Risk identification – Identify – Analyze Opportunities / Risk assessment – Assess – Probability of occurrence and impact – Summarizing opportunities / risks of the same type – Aggregate Opportunities / Risk management – Plan measures – Implement – Monitor Opportunities / Risk reporting – Risk managers – Board of Management – Audit Committee / Supervisory Board Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 52 This ensures that the S pervisory Bo rd and Audit Committee of ÖBB-Holding AG a d of the Group companies are provided with detailed information regarding the current opportunity and risk situatio . The primary objective of the risk policy is to ensure the unrestricted safeguarding of the company’s activities. Accordingly, risks are only taken if their dimensions are assessable and are accompanied by an expected increase in earnings and company value. Ukraine crisis In view of the geopolitic l dev lopments in Ukraine, the ÖBB Group paid increas d attentio to p ssibl influencing fact rs due to the existing conflict duri g t reporting period as part of the regular risk inventory. Group-wide (technical, personnel and procedural) measures to prevent sanctions violations were implemented and monitored. The Supervisory Board was informed about risks and the measures introduced s part of risk reporting. The uncertainties and effects of this situation that are relevant for ÖBB are able to be assigned to the existing risk categories analogous to the general risk inventory. Opportunity and risk management process This process is supported by risk management software. In 2023, the software used was reviewed for functionality and state-of-the-art capabilities i an ext nsiv market survey and subsequently updated to the latest technical standard. Individual risks and opportunities are assessed not only by the technical experts but als in the Group-wide opportunity and risk platform. Reports are then prepared for the manag ment bo ies that show the most important risks and the corresponding countermeasures or opportunities. On this basis, the Supervisory Boards and the appointed audit committees of ÖBB-Holding AG and the Group companies are provided with comprehensive information on the current opportunity and risk situation. The most important opportunities and risks for the year 2024, none of which pose a threat to the company’s continued existence, are distributed among the individual opportunity and risk areas as follows: Strategy The pot ntial consequences of future pandemics are taken into account across the Group as risks with regard to a possible deterioration in earnings and liquidity. The experience and knowledge gained from dealing with the Covid-19 pandemic will have an impact. The “Nordstern” programme is still being implemented and – building o previous years – is a key factor in the secur future orientation of the ÖBB Group. This transformation programm was d veloped with the involvement of all Group companies. It is intended to prepare the compa y for significant challenges and risks i the coming years, which ar expected to result in particular from intensified competitive pressure and technological change. Defined measures for implementing the concept are taken into account in budget and medium-term planning. Regular monitoring of the strategic measures is perf rmed. Increased attention is also being paid to the topics of “knowledge transfer” and “succession management”, with the generational change simultaneously acting as an opportunity to successfully position the organisation for the future.