42 Risk Report Our risk management system consists of a number of com- ponents that are embedded into E.ON's entire organizational structure and processes. As a result, our risk management system is an integral part of our business and decision-making processes. The key components of our risk management system include our Group-wide guidelines and reporting sys- tems; our standardized Group-wide strategy, planning, and controlling processes; Internal Audit activities; the separate Group-wide risk reporting conducted pursuant to the Corpo- rate Sector Control and Transparency Act ("KonTraG"); and the establishment of risk committees. Our risk management system is designed to enable management to recognize risks early and to take the necessary countermeasures in a timely manner. We continually review our Group-wide planning, con- trolling, and reporting processes to ensure that they remain effective and efficient. As required by law, the effectiveness of our risk management system is reviewed regularly by Internal Audit. Risk Management System Additional Reports on E.ON Group Financial Management (includ- ing Liquidity) Additional Separate Reports on E.ON Group Commodity and Credit Risks Risk Management, Monitoring, and Reporting Planning and Controlling Process Earnings Report/ Medium-Term Planning E.ON AG Supervisory Board Audit and Risk Committee Financial Risks Market Risks External/Regulatory Risks Operating Risks Strategic Risks Other Risks Quarterly KonTraG Risk Reporting Internal Audit E.ON AG Board of Management Risk Committee Corporate Center Central Europe Pan-Euro- pean Gas U.K. Nordic U.S. Midwest Energy Trading New Markets Audits Audit Report Risk Management and Insurance E.ON Risk Consulting GmbH, a wholly owned subsidiary of E.ON AG, is responsible for insurance-risk management in the E.ON Group. It develops and optimizes solutions for E.ON's operating risks by using insurance and insurance-related instruments and secures the necessary coverage in interna- tional insurance markets. To this end, E.ON Risk Consulting GmbH is, among other things, responsible for management of client data and insurance contracts, claims management, the accounting of risk covering and claims, and all associated reporting. Risk Committee In compliance with the provisions of Section 91, Paragraph 2 of the German Stock Corporation Act relating to the estab- lishment of a risk-monitoring and early warning system, the