249 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Internal Control System, Risks and Opportunities, Compliance Risk Management in the BMW Group Non-financial risks as reported in the non-financial statement (NFS) Alongside the maintenance of a comprehensive system of risk management, sustainability constitutes a core strategic principle of the BMW Group. Risks resulting from sustainability matters are identified both via the Group-wide risk management network and the materiality analysis process in accordance with ESRS. In accordance with § 289c of the German Commercial Code (HGB), risks that could have an impact on the non-financial as- pects referred to in the relevant legislation are reviewed as part of the reporting process. Material risks in this context are defined as those stemming from business activities, business relation- ships and products and services provided by the BMW Group that are highly likely to have a seriously adverse impact. The ma- terial sustainability risks identified in accordance with the ESRS during the reporting year are presented in the ↗ Sustainability Statement. Otherwise, no material non-financial risks were identi- fied. Opportunity management Identifying opportunities is an integral part of the BMW Group’s strategy and planning processes. The Group’s range of products and services is continually reviewed on the basis of these anal- yses. ↗ The BMW Group Strategy The regular monitoring of key business processes and strict cost controls are also key factors for ensuring high levels of profitabil- ity and returns on capital employed. The importance of opportunities for the BMW Group is classified on a qualitative basis in the categories “material” and “immate- rial”. Probable measures aimed at safeguarding profitability are already considered in the outlook. Board of Management Supervisory Board Internal Control System Appropriateness Effectiveness Compliance Management System Internal and external audit Risk Management- System Steering Committee Risk Management Measures Steering Analysis and Evaluation Identification Reporting/ Monitoring