Risk management

As an international aviation company, the Lufthansa Group is exposed to macroeconomic, sector-specific, financial and company-specific opportunities and risks. Opportunities and risks are ever present elements of doing business. The companies in the Lufthansa Group manage them deliberately and proactively. To underline the close connection between opportunities and risks, the Lufthansa Group defines them as the negative or positive deviation from a forecast figure or a defined objective for possible future developments or events. The operational management of opportunities and risks is integrated into the business processes.

Objectives and strategy of the risk management system

Risk management in the Lufthansa Group always takes place as a logical system of rules that cover all relevant Company activities. Risk management aims to ensure that commercial opportunities are realised throughout the Group and that all relevant, regulatory requirements for risk management systems are met in full. The Lufthansa Group’s risk strategy is manifested in the principles of risk management. They are intended to ensure that risks are fully identified, presented transparently to enable comparison, and measured. They oblige the risk managers to proactively manage and monitor risks, as well as defining how risk-relevant information is to be incorporated into planning, management and control processes. The principles of risk management are governed by the risk management guidelines adopted by the Executive Board, which also provide a binding definition of all methodological and organisational standards for dealing with risks.

Further information regarding the opportunity and risk management system can be found here.