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Business risk

Risk management, quantification and reporting

To manage business risks, we primarily assess aspects of corporate planning, the intensity of competition, product development and – as material influences on the core business of the comdirect group – the number of trades as well as interest rates. The net operating profit (NOP) is used to assess the planning variances in past business periods. The VaR of the business risk is determined using a model which illustrates the variances between the planned result and generated NOP.

Strategic decisions regarding the further development of the business model are made on the basis of extensive analysis by the Board of Managing Directors with approval of the Supervisory Board.

Current risk situation

The VaR of €24.6m at the end of 2011 (previous year: €26.7m) reflects the ongoing comparatively high planning uncertainty in the current interest rate and capital market environment.