Document background
The Executive Summary Risk Assessment is a critical governance document required under German corporate law, particularly relevant for organizations operating under the German Commercial Code (HGB) and Corporate Control and Transparency Act (KonTraG). This document serves as a high-level overview of an organization's risk landscape, typically prepared annually or when significant organizational changes occur. It provides senior management, the Supervisory Board, and other key stakeholders with a consolidated view of material risks, control effectiveness, and recommended mitigation strategies. The assessment is particularly important in the German regulatory context, where robust risk management systems are mandatory for corporations, and documentation of risk assessment and monitoring is required by law. It supports compliance with German corporate governance requirements while facilitating informed decision-making at the executive level.
