Financial Market Risks Sample Clauses


Financial market risks. As a globally operating company, the Group is exposed to financial market risks that may result from changing interest rates, foreign exchange rates and changes in the banking landscape. These risks are managed within our usual business and financial activities.In order to present the market risks, sensitivity analyses within the meaning of IFRS 7, Financial Instruments: Disclosures, are conducted. The sensitivity analysis is a very commonly used instrument for monitoring financial market risks and allows the assessment of such risk positions. The sensitivity analysis is approximatively quantifying the risk that may arise within the scope of taken assumptions if certain parameters change within a defined range. The risk assessment is based on the following assumptions:•the revaluation and devaluation of the EUR towards the USD by 5%•a parallel shift of the interest yields of all currencies by 50 basis points (0.50%-points)The potential economic impacts determined in the sensitivity analysis are based on the occurrence of the assumed unfavorable market changes. The actual impacts on the statement of profit and loss may deviate substantially from these assumptions due to the actually incurred market developments.