RISK MANAGEMENT

Corporate Risk Management, established with the aim of identifying uncertainties that may affect the Company, managing the risk-taking profile and providing reasonable assurance to attain corporate objectives, has an effective structure for determining strategies that may be influenced by employees and senior management, and is applied across the company. Triggering causes such as updated business objectives, new arrangements and the requests of shareholders support a realistic risk management.

The Early Risk Detection Committee works to implement necessary measures and to manage risks effectively for the early diagnosis of the situations that may endanger the Company’s existence, development and continuity. The Committee reviews the efficiency of risk management and internal control systems at least once a year, and reports their evaluation reports to the Board every two months, which are also shared with the auditor.

Risks addressed in the probability, potential impact and process categories are classified as financial, operational, strategic, compliance, and external environmental. Within the frame of risk management, risks are monitored based on content by the General Directorate of Financial and Administrative Affairs, and relevant general directorates, and communicated to the Board of Directors, the Audit Committee and Early Risk Detection Committee by the Executive Board.

Doğuş Otomotiv Risk Management Approach

Doğuş Otomotiv Risk Management Approach has been formed to:

  • Ensure that the Company’s corporate strategy is consistent with risk management;
  • Create decision-making processes to expand the company’s vision regarding corporate risks to include societal, environmental, economic and ethical risks;
  • Manage a quality oriented procurement system with a strategic and comprehensive risk approach;
  • Make sure that commercial legal terms and conditions are applied equally to all parties concerned;
  • Develop corporate foresight to increase the confidence of shareholders and stakeholders in the Company;
  • To build structures resistant to all risks and support the habit of intervention in the right time to ensure long-term sustainability;
  • Create a risk management model that would benefit from opportunities efficiently and proactively.

 

Risk Management Policy

The Company's risk management policy is established within a framework shaped by internal control and audit activities, in which roles and responsibilities are determined from the Board of Directors to the lowest level, and risk processes are planned and managed. According to Doğuş Otomotiv Risk Management Framework and Working Principles, the key issue that we value is that risk should be expressed in the same language by all our stakeholders as part of a shared company culture. It is essential that the models and methods designed for this purpose and intended to be implemented in the Company are also addressed in accordance with generally accepted references. Timely detection of the elements that may pose a threat to our organization, assets and stakeholders, taking measures and increasing the effectiveness of oversight are the major factors that steer the direction of our activities.

Commitments to External Initiatives

Precautionary Approach

The process of identifying risks and opportunities at Doğuş Otomotiv is carried out in each department of the Company and in each field of operations in a healthy and systematic manner. Doğuş Otomotiv has been working on developing a comprehensive risk management policy while managing necessary processes to ensure implementation of related policies in all operations.

Starting from the idea that managing risk properly is essential for the sustainability and success of the Company’s operations, internal audit and control structures are aligned with this process.

Doğuş Otomotiv supports the involvement of senior executives in all strategic and operational decision-making processes that directly affect their own departments.

Risk management is recognized not only as a part of planning in operational and financial processes but also as a prediction mechanism in all new applications, investments and operations.

Our performance in societal, environmental, economic and ethical areas is also evaluated within the risk management approach, including possible negative risks or opportunities.

 

Agreements, Principles and Initiatives Signed outside the Organization

Doğuş Otomotiv has signed the United Nations Global Compact in 2010 and declared its commitment to its 10 principles and been served on the initiative’s Board of Directors in Turkey in 2013.

 

Detailed information about Doğuş Otomotiv Risk Management can be found in Corporate Governance and Principles Compliance Report and 2019 Corporate Sustainability Report:

 https://www.dogusotomotiv.com.tr/newdogusotomotiv_files/202022823217799_DogusOtomotivFR_2019_EN_WEB.pdf