• KontraG
  • KontraG

The german Corporate Sector Supervision and Transparency Act (KontraG)

The aim of this german act which became effective on 01st May 1998 is to improve the principles of corporate governance by specifying the german Stock Companies Act. The core of this act is the introduction of an early warning risk management system to protect companies against existence-threatening impacts. It is within the scope of internal audits to confirm the existence and the operation of such a system. The results of such reviews have to be part of the final audit report.

The increasing importance of risk management for companies (not only Stock Companies) means that an appropiate risk management system will be a future prerequisite for the granting of loans by financial institutions.

To get more information about the advantages of a structured risk management system for your company please contact us.

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