Enterprise Risk Management at Deutsche Post DHL



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Introduction

In May 2014, logistics group, Deutsche Post DHL (DPDHL), reported the results for the first quarter, which was below expectations. The disappointing results were attributed to revenue increasing by just 1.2% to € 13.6 billion from €13.4 billion in the same period the previous year. One of the major reasons for the minimal growth was the significant rise in the Euro (€) (reported/home currency of DPDHL) against the US dollar (USD) (Refer to Exhibit I for movement of USE/EUR).

According to company sources, the negative currency effect had reduced the revenue by €461 million. However, Frank Appel, Chief Executive Officer (CEO) of DPDHL, said, “We performed well in the first quarter (of 2014). Despite negative exchange-rate effects and the continued sluggish global economy, we once again generated profitable growth....

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According to experts, DPDHL was not the only company to have been adversely affected by the currency fluctuation. Puma SE and SAP AG also were hurt by the strong euro. However, another group of experts believed that the currency effect would be nullified in the coming quarters as the company had a very strong risk management process to control currency and other risks.

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