The Würth Group's corporate governance is aligned with its ownership structure. The distribution of powers and responsibilities among the management bodies is governed by the applicable Compendium on the Legal Structure of the Würth Group. This well-balanced system of distribution of power acts as a strong protection against undesirable developments of all kinds. The Policies and Procedures regulation is a crucial element in the Würth Group's operating system. It comprises standard procedures as well as global policies on operational management and collaboration with internal and external partners.
Law on Corporate Control and Transparency (Gesetz zur Kontrolle und Transparenz im Unternehmensbereich; KonTraG):
Although the Würth Group as a partnership is not subject to the German Law on Corporate Control and Transparency (KonTraG), the Supervisory Board has nevertheless implemented KonTraG-equivalent guidelines within the Group.
Risk management and risk controlling:
The individual Würth companies enjoy a high level of independence in their operational business (decentralised structure). Risk management falls under the remit of the active Management. It is Management's responsibility to maintain a functional early-warning system and recognise developments putting the survival of the company at risk early on. Risk controlling acts as an additional safety net protecting the Würth Group from harm. It falls under the remit of the Würth Group's Advisory Board.
Risk management system:
The Würth Group's risk management system comprises the following elements:
- Early-warning System
- Internal Monitoring System
- Organisational safety measures
- Internal Audit
- Process-dependent controls