Group Management Report Products Safety and Health Environment Human Resources Social Commitment Consolidated Financial Statements 83
regulations were agreed between the negotiating parties in
the course of 2021. An increased risk of a significant im-
pact on earnings is no longer expected.
Legal violations (compliance risks) can give rise to liability
risks or tarnish our reputation, which can have a signifi-
cant effect on the Group’s earnings and asset situation. We
counter these risks within the framework of our compli-
ance management system, inter alia by regularly informing
and training our employees about relevant legal requirements.
The amount of loss within the compliance risk group
was reduced slightly, and the risk group is still classified as
An important basis for long-term success are com-
petent and committed employees. Should we no longer be
able to recruit or retain suitable specialists or managers
in the future, risks could arise for the successful implementation
of our strategy (personnel risks). To counter these
risks, ALTANA offers a sophisticated work environment and
an attractive compensation system, which is supplemented
by various pension plans and wealth creation schemes. Moreover,
we regularly offer further education and training
programs to budding junior staff members, as well as to
specialized and managerial staff.
Compliant Group Accounting
Essential accounting-related risks arise particularly when
extraordinary or non-routine issues are handled. These include
the first-time consolidation of acquired businesses or parts
of companies as well as the recording of the sale of Group
assets. Accounting of financial instruments is also subject
to risks due to the complex evaluation structure. Risks also
arise from fraudulent acts.
At ALTANA, a separate department of the Group’s
holding company coordinates and monitors Group accounting.
A core component of the control system are the guidelines,
process descriptions, and deadlines that this department
defines centrally for all companies, guaranteeing a standardized
procedure for preparing the financial statements.
For complex issues, the instruments needed for uniform
accounting are retained centrally for all Group companies. For
recording extraordinary processes and complex special issues,
we regularly obtain external reports, advice, and statements.
The financial statements of the individual Group
companies are prepared decentrally by the local accounting
departments. Hence the individual companies are respon-
for preparing the financial statements, in keeping with
Group guidelines and country-specific statutory account-
The work steps needed to prepare the financial statements
are defined such that important process controls are
integrated. These include guidelines pertaining to the
separation of functions and allocation of responsibilities, to
control mechanisms, and to IT system access regulations.
The respective management explicitly confirms to the Group’s
management that the annual financial statements are
correct and complete. In addition, important financial statements
are audited by the company or Group auditors in
The local financial statements are recorded and consolidated
via standardized formats and processes in a central
IT system. At the divisional and holding company levels numerous
manual and IT-assisted control mechanisms are
applied. They encompass an analysis and a plausibility examination
of the registered data and the consolidated results
by Group accounting as well as by the controlling department
and other departments with expertise in this area. Required
corrections of the information in the financial statements are
generally made at the level of the individual company to
ensure the data are uniform and are transferred.
The company auditor and the Group auditor examine
issues, processes, and control systems relevant for the gen-