Risk and Audit Committee

The Risk and Audit Committee supports the Board in supervising accounting and financial reporting, the auditors and the external real estate valuer and in monitoring compliance with legal requirements.

The tasks include reviewing the structuring of the accounting system in terms of appropriateness, reliability and effectiveness, reviewing the annual financial statements and the other financial information to be published, monitoring corporate risk assessment and reviewing risk management practices and/or the effectiveness of the internal control system (ICS) and periodic reviewing of the insurance cover available to Allreal. The Risk and Audit Committee is also responsible for monitoring business activity for compliance with decisions of the Board of Directors, with internal regulations and guidelines, with corporate policy principles and with relevant legal requirements, in particular those arising from the Stock Exchange Act.

In addition, the Risk and Audit Committee reviews the performance, independence and compensation of the auditors and the external real estate valuer. This includes in particular examining the compatibility of the auditing activities with any consultancy mandates and reviewing overall remuneration. The review reports and the resulting findings and recommendations are discussed in detail with Group Management and the external auditors and consequent measures are formulated. Implementation of these measures is overseen by the Risk and Audit Committee.

The tasks, duties, and powers of the Risk and Audit Committee are defined in the organisational regulations of 2 December 2014. The full Board of Directors is informed of the activities of the Risk and Audit Committee by the latter’s Chairman at the next Board meeting and decides on any resulting proposals.

The Risk and Audit Committee is made up of Thomas Stenz (Chairman) and Olivier Steimer (member). Meetings are attended by the Chief Financial Officer.

In 2018, the Risk and Audit Committee held two meetings, each of which lasted two and a half hours. The main focus was on reviewing the 2017 annual financial statement and the 2018 half-yearly financial statement in relation to the above-mentioned tasks. In addition, cooperation with the external auditors and the operational management was assessed in detail. Both meetings were attended by all Committee members for the full duration. Representatives of the external auditors, the external real estate valuer and the internal auditors were present for individual items on the agenda.