Risk assessment

Items in the balance sheet and the income statement that are based on estimates or generated by complex processes are relatively more exposed to the risk of error than are other items. Major items in this respect include goodwill and other immaterial assets as well as provisions in captive insurance companies and allocations to pension funds. The Group's in-ternal audit function performs an annual risk analysis to identify such items and quantify risks. The results of risk analysis and evaluation are reported to the Audit Committee and are subsequently taken into account in the annual internal audit plans.