35. Management of risks and opportunities

35.1. Risk management process

Against the background of the current energy policy environment and associated volatile price developments, the industry as a whole and Energie AG as an industry player are facing numerous uncertainties.

The aim of Energie AG’s risk management system is to identify resulting opportunities and risks at an early stage, counter risks with suitable measures, and harness opportunities. As an integral part of the management and control system, risk assessments form part of the strategic and operational decision-making process and support our management team.

The risk management of Energie AG follows the established COSO-II framework as the risk management standard across the Group. The responsible business units follow a structured quarterly process to identify and evaluate risks, opportunities and measures, and record them in a central management system. The data collected decentrally is then analysed at the Group level and combined to form the Group’s overall risk position.

Reporting to the Group's Management Board is done on a quarterly basis and ad hoc as required. The risk management report is an integral part of reporting to the Supervisory Board and is, in accordance with the requirements of the Austrian Company Law Amendment Act (URÄG), also submitted to the audit committee with respect to the efficiency and validity of the processes. The central management system assures proper documentation and verifiability.

35.2. Significant opportunities (+) | risks (−) 1) and measures


+|− Strategic opportunities | risks due to

  • Changes in general climatic conditions
    • Extreme events and their consequences (periods of heat | drought, flooding, storms, hail, forest fires, avalanches)
    • Long-term changes in climatic and ecological conditions (precipitation frequency/volume, increase in average temperatures)
  • Changes in the general energy policy and energy market environment
  • Changes in technological developments, in the market environment, in customer needs …


  • Continuous intensive monitoring of energy policy developments, markets, competitors, customers, the climate and technologies
  • Participation in research projects, …
  • Early and intensive monitoring of strategic opportunities | risks


  • Write-ups and write-downs of assets, procurement rights, investments
  • Allowances for receivables
  • Creation of provisions for impending losses


  • Ongoing monitoring, sensitivity analyses
  • Long-term contracts
  • Counterparty risk management


  • High, long-term investment costs, projects with a high level of complexity
  • Underruns and overshooting of the planned values in terms of timing schedule, project costs and quality
  • (Energy) policy uncertainty


  • Project management
  • Risk management methods in the entire project cycle
  • Optimised contract arrangements


In the medium term – in our 5-year planning horizon – we assume that climate-related opportunities | risks will remain within the statistical range of the past few years, and these have been taken into account in our (opportunities | risks) scenarios.

Potential long-term climate-related risks and opportunities beyond this have been taken into account in strategic decision-making.

For opportunities|risks that may affect questions of sustainability as a result of Energie AG's business activities, see Sustainability Opportunities and Risks


+|− Market price changes

(electricity, gas, biomass and emission allowance prices)


  • Bundled management of commodity price risks by Energie AG Oberösterreich Trading GmbH
  • Risk strategies geared for the market environment
  • Leveraging of internal synergies within the Group

+|− Electricity generated from hydroelectric power

influenced by development of weather/climate


  • Optimised management of generation portfolio

+|− Electricity production from thermal power plants


  • Bundled management of commodity price risks by Energie AG Trading
  • Long-term contracts
  • Leveraging of internal synergies within the Group
  • Risk strategies geared for the market environment

+|− Electricity, gas, heat and telecommunications services sales volumes

influenced by development of weather/climate, competition, economy, policy, …


  • Bundling of sales organisations
  • Price guarantee
  • Service and subsidy offerings
  • Focus on digitalisation
  • Positioning as an energy service provider

+|− Market price and volume changes in waste management

Recycling materials, industrial waste, domestic waste, delivery prices, thermal, …

  • Increased competition from pretreatment plants and industrial co-incinerators
  • Increased re-municipalisation efforts of municipal waste management associations


  • Long-term indexed contracts with defined delivery volumes and prices
  • Focused market activities
  • Intensification of cooperation with the public sector
  • Further development of the digitalisation projects

+|− Contractual losses|gains and contract changes in the water|wastewater sector


  • Synergy projects
  • Ongoing participation in (concession) tenders


− Facility risks

Impairment of the availability of facilities due to

  • Technical malfunctions, sabotage, …
  • Natural disasters such as storms, flooding, …


  • Maintenance and quality controls
  • Optimised maintenance strategy
  • Structural (flood) protection measures
  • Strategy programmes “Replacing overhead medium-voltage lines that are particularly susceptible to disruption with underground cable”, "Replacing low-voltage lines", consistent expansion of grid automation
  • Crisis and contingency management
  • Insurance

+|− Physical weather risks

Physical weather-related risks such as periods of heat | drought, flooding, storms, hail, forest fires, avalanches and their impact on third parties


  • Structural (flood) protection measures
  • Strategy programmes “Replacing overhead medium-voltage lines that are particularly susceptible to disruption with underground cable”, "Replacing low-voltage lines", consistent expansion of grid automation
  • Crisis and contingency management
  • Insurance

− Risks from information security, cyber-security and data protection


  • Optimised insurance strategy
  • Comprehensive technical measures
  • Management systems for information security and data protection

− Personnel risks

  • Health and safety risks for company staff and temporary employees
  • Loss of expertise and practical knowledge


  • Safety training courses for employees
  • In-house health management project energy@work
  • Apprentice|trainee education
  • Group policies “Human Resource Management”, “Management by Objectives” and “Management Academy”


+|− Changes in the statutory environment

the electricity and gas grids


  • Intensive and constructive dialog with the regulatory authorities
  • Cooperation with interest groups

+|- Legal risks

from pending legal disputes


  • Legal support
  • Provisions in the balance sheet
  • Out-of-court settlements

+|− Political and statutory environment

  • EU climate policy provisions and their implementation in Austria
  • Statutory environment for project development and implementation
  • Changes to subsidy regime


  • Intensive and constructive dialog with authorities and politicians
  • Cooperation with interest groups


− Compliance risks

  • Antitrust and corruption risks
  • Financial market compliance


  • Group policies “Compliance Management System” and “Anti-Corruption”, “Handling on Insider Information”, “ICT Information Security Management”
  • In-person training and e-learning courses

− Data protection infringements

  • Accidental or unlawful destruction, loss, alteration or disclosure of data
  • Hacker attacks


  • Group policies “Data Protection Management System” and “Data Protection Compliance Policy”
  • In-person training and e-learning courses


+|− Changes in interest rates


  • Long-term fixed interest agreements

+|− Foreign exchange risk

Primarily from the transaction and translation risks of the Czech Group companies


  • Ongoing monitoring
  • Currency hedging, where necessary

+|- Prices changes in financial assets (securities, funds)

resulting from fluctuations in market value on the capital markets


  • Conservative investment policy
  • Consistent monitoring
  • On-going quantification of share price risks

+|- Rating change

means lower| higher refinancing costs


  • The management of Energie AG continues to seek to maintain Energie AG's Single A credit rating in the long term
  • Ensuring compliance with the required key financial performance indicators

+|− Opportunities | Risks from investments

  • Fluctuations in the returns on investments
  • Fluctuations in dividends received


  • Ongoing monitoring
  • Representation on the boards of the subsidiaries

+|− Changes in the discount rate for provisions

The present value of provisions decreases at a higher discount rate and increases at a lower discount rate


  • Ongoing monitoring

− Counterparty risks

Complete or partial failure of counterparties


  • Ongoing monitoring
  • Credit limit systems
  • Hedging instruments
  • Targeted strategy of diversification of business partners

- Liquidity risk


  • Centralised, forward-looking liquidity planning
  • Sufficient liquidity reserves
  • Open, partially committed credit lines

1) 1) Risk|opportunities, definition:
- A risk is the possibility of an event occurring which has a negative impact on targets (EBT, EBIT, cash flow)
- An opportunity is the possibility of an event occurring which has a positive impact on targets (EBT, EBIT, cash flow)
- For more information on the risks | opportunities which may have an impact on the concerns of the Sustainability and Diversity Act (NaDiVeG) as a result of Energie AG's business activities, see Sustainability opportunities and risk management

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