Presentation of the risk position
We have allocated the entire METRO risk portfolio to risk groups. In addition to general risks, the Management Board of METRO AG identified and assessed the particularly relevant risks (gross risks) METRO was exposed to during the reporting period. These are listed in the following overview.
Risk group |
|
|
|
No. |
|
Particularly relevant risks 2016/17 |
|
Potential extent of damages |
|
Probability of occurrence |
Risks related to the business environment |
|
|
|
1 |
|
Macroeconomic and political risks |
|
Significant |
|
Low |
|
|
|
2 |
|
Interruption of business activities |
|
Significant |
|
Low |
|
Specific industry sector risks |
|
Risks related to the retail business |
|
3 |
|
Challenges in the business model |
|
Material |
|
Possible |
|
Real estate risks |
|
4 |
|
Deficient rental cover |
|
Minor |
|
Likely |
|
Economic performance risks |
|
Supplier and product risks |
|
5 |
|
Quality risks |
|
Significant |
|
Low |
Financial risks |
|
|
|
6 |
|
Planning reliability |
|
Significant |
|
Possible |
Other risks |
|
Strategic risks |
|
7 |
|
Risks associated with the demerger |
|
Significant |
|
Unlikely |
|
Human resources risks |
|
8 |
|
Development of employee numbers and attractiveness as an employer |
|
Moderate |
|
Possible |
|
|
|
9 |
|
Failed collective bargaining negotiations at Real |
|
Significant |
|
Possible |
||
|
Legal and tax risks |
|
10 |
|
More stringent regulation on subsequent benefits |
|
Moderate |
|
Possible |
|
|
|
11 |
|
Tax risks |
|
Moderate |
|
Possible |