RISK MANAGEMENT

Protective shield against risk

Z

he setting up of the Internal Control System (ICS) at ŠKODA AUTO acts as a new protective shield against risk. Risk management is essential to ensuring the carmaker’s success in the long term. Its employees have to recognise risks in time and manage them actively, which also includes preventing them from happening. Whether everyone is actively preventing risks will be checked by the ICS in the coming months. The system was created based on the requirements of the VW Group’s Board of Management and the principles of the Together4Integrity programme. “The aim of the project is to shift towards a process-oriented company and create a kind of protective shield that will allow the carmaker to reduce major process risks – for example, through regular standardised checks and their subsequent effective testing”, explains Helena Frostová from GO – Governance, Risk & Compliance. The ICS also clearly assigns responsibility, identifies weaknesses in key processes, complies with internal and external regulations and makes use of a unified IT system. A project team was formed in July and consists of the GO department, a partner department from the VW Group and the consulting company Deloitte. Heads of departments will get acquainted with the ICS project in the first wave before its three-stage implementation. The last of these stages will take place by the end of 2021. ED

Three implementation stages of the ICS

1 

In-depth analysis of key processes, including the existing checks and their comparison with the Group’s requirements, defined by the so-called catalogue of sample checks (MCC Catalogue). 

2

Determining whether the existing checks of key processes in departments are appropriate or whether new ones have to be set up and effectively tested.

3

Testing the effectiveness of the new ICS.