Corporate Risk Management

Risk and opportunity management

Effective risk and opportunity management is an important part of our business activities and supports our goal of sustainable and profitable growth. The semiconductor business is characterized by regular cycles of market growth followed by periods of significant market decline. The risk and opportunity situation is also influenced by high investment requirements to achieve and secure our market position, as well as extremely rapid technological change. Competition for innovative advantages is also being fought out at the legal level.

Against the backdrop of these fundamental characteristics of the semiconductor industry, our risk policy is geared toward realizing the resulting opportunities in a timely manner in a way that increases the value of the company. At the same time, existing risks, including those associated with seizing opportunities, are actively managed whereas risks that could jeopardize the continued existence of the company will be avoided.

To this end, risk management is closely linked to corporate planning and the implementation of our strategy. Overall responsibility for the ERM system lies with Infineon's Management Board. The general risk policy and risk management strategy of Infineon's Management Board forms the basis for the risk management process. In addition, the Audit Committee, as part of the Supervisory Board, is informed quarterly about the company's risk and opportunity situation. The Audit Committee monitors the elements of Infineon's risk management system and discusses the principles of risk assessment and risk management with the Infineon Management Board.

Furthermore, Infineon has established a semi-annual Corporate Risk Committee (CRC) in which the CEO and CFO participate. The committee conducts cross-functional risk discussions and determines Infineon's risk measures. In addition, the Corporate Risk Committee is responsible for ensuring that all relevant topics are included in the risk registers.