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Business risk

Risk quantification, management and reporting

To manage business risks, we primarily assess aspects of corporate planning, the intensity of competition, product development and – as material external influences on comdirect’s core business – the number of trades as well as interest rate environment. 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 €18.3m at the end of 2012 (previous year: €24.6m) reflects the ongoing comparatively high planning uncertainty in the current interest rate and capital market environment.