Annual Report 2010 - Muenchener Hypothekenbank eG

accountinG-BaseD internal control anD risk manaGement proceDures The accounting-based internal control system is documented in organisational guidelines, descriptions of work processes, financial reporting handbooks, and numerous operating instruc- tions. it contains organisational security measures, and ongo- ing automatic measures and controls that are integrated in the work processes. These are, in particular, separation of functions, the double-check principle, access limitations, pay- ment guidelines, new product process and balance confirma- tions. Process-independent measures are, above all, carried out by the internal audit department. The management methods described in the risk report make qualitative and quantitative statements regarding Münchener hypothekenbank's economic situation, including, for example, the development of performance. This evaluation involves aspects of all risk categories. A close coordination procedure exists between the risk con- trolling and accounting departments at Münchenerhyp. This coordination process is supervised by the entire Board of Management. The results from the risk management system form the basis for the multi-year planning calculations, year-end projections, and agreement procedures for approving the realised key figures generated by the Bank’s accounting process.