ÖBB Annual Report 2023

Group Management Report 98 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 53 Operating business Regular inspections of assets are undertaken as measures to reduce the risk of a drop in revenue and additional expenditure due to quality problems with assets – for example rolling stock and locomotives. Reporting systems are being optimised, maintenance services are being extended to additional providers and counteractive emergency systems improved. The risk of terrorist attacks and acts of sabotage is minimised through targeted measures and instructions (behavioural recommendations) as well as through close cooperation and coordination with the Federal Ministry of the Interior. Existing emergency and contingency plans are regularly evaluated and reviewed as part of appropriate exercises. These statements also apply to the Group-wide risk of a possible blackout. In the event of a general grid failure, appropriate measures have been worked out and mapped in an evaluated form in risk management. Risks from force majeure and natural hazards are countered with established systems and programs. For example, a natural hazard management system has been implemented (incl. weather information system, flood information system, natural hazard information map). The risk of non-implementation or partial implementation of planned measures to increase productivity is monitored and minimised through ongoing monitoring of the measures. Sales and distribution Risks are posed both by uncertainties relating to economic developments and the resulting lower numbers of travellers and transport volumes, as well as by increasing competition. Procurement risks that materialise in procurement due to price increases have an impact on sales due to a lack of compensation on the customer side. Price and volume risks in the portfolio take this development into account. Observation and analysis of customer behaviour, targeted adjustment of the offer and corresponding negotiations with regard to service compensation contribute to the reduction. Both the expansion of the company’s portfolio as well as corresponding new offerings increase the chances of acquiring new markets and customers or further exploiting the market potential of existing customer groups. Risks arising from dependence on individual major customers are countered by increasing customer loyalty and monitoring the market situation of customers. Personnel, management and organisation A pandemic virus that causes contagion among staff may – analogous to the COVID-19 situation – lead to resource bottlenecks. The behavioural and organisational measures already developed and preventive health measures may have a risk-reducing effect. There is a risk in the personnel area that the non-implementation or partial implementation of planned measures such as efficiency improvements, appropriate recruiting and sufficient knowledge transfer that additional personnel expenses are generated. Comprehensive monitoring has the effect of minimising risk. Uncertainties regarding the development of inflation led to increased risks in relation to planned salary valorisations in the reporting year, as salary agreements may deviate from the plan each year. Various compensatory measures are being developed to counter this risk. This enables an according reaction should this risk materialise and thus keep the impact on results to a minimum. Law and liability The “Code of Conduct” contains the ethical principles and general principles that guide the Group’s business activity. This code mitigates, among other things, the risk of costs arising from penalties for violations of antitrust regulations. The existing compliance team works primarily in this risk area as a key part of the early risk detection and monitoring system. This ultimately serves to avoid risks and as such prevent damage. Changes in legislation and regulations can lead to increased system costs, for example, due to new technical or organisational requirements. This applies both at national and international level. Accordingly, developments are carefully monitored and examined for possible effects in order to be able to react at an early stage. | MR53