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Software AG GB 2012, englisch

SOFTWARE AG | ANNUAL REPORT 2012 140 Finance All accounting decisions relevant to the Company’s financial statements as well as the revenue calculation process are monitored and/or executed by the global Corporate Finance department. This ensures compliance with IFRS accounting regulations throughout the Company. Treasury The Corporate Treasury team creates daily cash and weekly hedging transaction reports for the Management Board. All high-risk foreign-currency and hedging transactions may be conducted only by the Corporate Treasury team, which is directly below the CFO. The national subsidiaries are forbidden by a global treasury policy from engaging in any high-risk transactions with derivatives. Regular internal audits monitor compliance with this policy. Internal Audit Software AG’s Internal Audit is an active component of the Company’s risk management system. Through a systematic and targeted approach, it ensures the effectiveness of risk management along with the evaluation and continual improvement of the internal control systems and the manage- ment and supervision processes. It is also geared to the cre- ation of added value for Software AG by optimizing business processes. Internal Audit reports directly to the CEO and oper- ates worldwide. Central responsibility for Group-wide processes Risks and opportunities throughout the world are managed and controlled by the teams at corporate headquarters responsible for risk management for both Software AG and its subsidiaries. Corporate headquarters compiles risk and opportunity reports, initiates further development of our risk management system and elaborates risk-mitigating guide- lines for the entire Group. We constantly review the function- ing and reliability of the system as well as the reporting. Software AG’s internal control system has operationalized business risks by way of internal policies on business policies and practices, as well as Group-wide specification of effec- tive internal controls. The defined policies regulate internal procedures and areas of responsibility at the global and local levels. They are designed to provide information for man- agement and to monitor the operating business risks of the Software AG Group. In order to enhance transparency admin- istration, communication and compliance assessment of the policies are carried out centrally. Another component of risk and opportunity management is the transfer of operating risks to insurance carriers. The General Services department at corporate headquarters coordinates this function globally. Structure of the risk management system Controlling Controlling—which is under unified global leadership—mon- itors operating business risks in real time and reports man- agement-relevant figures monthly to the Management Board. In addition, both operational and strategic risks are analyzed by means of a key performance indicator system and reported quarterly to the Management Board.