Risk management
In 2008, the impact of the global macroeconomic downturn accompanied by significant uncertainty within the financial markets has created an environment in which risk management processes have also had to adapt to the changing dynamics.
TNT recognises that risk remains as an intrinsic component of doing business, however a structured and transparent risk management process facilitates management to identify, manage and prepare for risks in an informed, controlled and transparent manner.
TNT’s enterprise-wide risk management systems are therefore designed to identify principal key strategic, operational, legal and regulatory, and financial risks facing the group in the pursuit of its Focus on Networks strategy.
Whilst continuous emphasis has been placed on the identification of risks at all levels of the organisation and to develop mitigating actions, the constant changes in the environment in 2008 have made it challenging to keep abreast of the rapidly evolving situation.
During 2008 the risk profile within TNT changed significantly with many previously reported inherent risks becoming specific within a very short period of time. TNT management has reviewed the risk profile regularly throughout the year and will continue to do so regularly during 2009.
For those risks deemed to be material, comprehensive mitigating action plans are developed and reviewed regularly by the Board of Management. All operational units worldwide continued to participate in the comprehensive risk identification process, the outcome of which is reported to the relevant divisional group and functional management.
In addition, regular status reports of risk mitigating actions are provided to the Board of Management to further strengthen the company’s risk management processes. The outcome of the risk management process is shared and discussed with the audit committee of the Supervisory Board and the Supervisory Board.