Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure DE-1998-18/2476 – measures in Germany
|Country||Germany , applies nationwide|
|Time period||Open ended, started on 01 May 1998|
|Context||Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Ensuring business continuity and support for essential services
– Smoothing frictions or reallocation of workers
|Author||Birgit Kraemer (Hans Boeckler Foundation) and Eurofound|
|Measure added||23 June 2022 (updated 02 November 2022)|
Early knowledge of potential internal and external risks that could jeopardize the continued existence of the company is supposed to help public limited companies to develop suitable solutions in response. As companies work in a constantly changing environments, risk identification and controlling shall be conducted on a continuous basis. This is done by implementing a mandatory risk management system on the basis of the Stock Corporation Law and supplementary laws.
Paragraph 91/2 of the Stock Corporation Law requires public limited companies to establish a system of measures and control instruments that are able to identify developments, at an early stage, that might negatively affect the continued existence of the company.
The legislator requires a monitoring system for the early detection of risks and the creation of appropriate communication structures that ensure that the decision-makers are able to initiate suitable countermeasures in good time.
In the annual management report with forecast character, the auditors must document in a special part of the audit report that measures have been taken and how they are designed, how effective these measures are, and document which measures are required to improve the internal monitoring system.
While all public limited companies must implement a risk mangement systems, the effectiveness of these measures are dependent on different factors. Mülller (2014) concludes that risk management systems are not a panacea for preventing corporate crises. In recent company failures, management either consciously accepted risks or concealed existing risks from supervisory bodies through so-called management override.
|Does not apply to workers||
||Does not apply to citizens|
Company / Companies
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Statutory risk management systems in public companies , measure DE-1998-18/2476 (measures in Germany), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DE-1998-18_2476.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.