Development of risks and opportunities

The global financial and economic crisis exposes RWE to risks. Falling industrial production could cause the demand for electricity to decline. Our earnings would suffer if electricity wholesale prices remained low for a long time. However, the utility sector is relatively crisis-proof, and our markets are among the most politically and economically stable in the world. Moreover, the economic crisis offers us opportunities: As a financially strong company with a good credit standing, we can initiate projects other companies can no longer finance.

The proactive management of risks and opportunities is an important element of our business activity. The RWE Group has a groupwide risk-management system for the early identification, as well as standardized reporting, assessment, control and monitoring of risks. We also identify opportunities and associated earning potential.