RISK REPORT

Good risk management pays dividends

Against the background of a systematic and efficient risk management system, the risks at ThyssenKrupp are contained and manageable. There are no identifiable risks which could in the future pose a threat to the existence of the Company. Business processes are well controlled in the Group. We counter market risks from cyclical price and volume developments in individual regions through our global market presence. Furthermore, our diversified product and customer structures limit the impact of negative developments affecting individual products, customers and sectors. To hedge against financial risks, the Group uses among other things derivative financial instruments. Detailed project controls restrict risks from business processes, especially on major projects. The information contained in the risk report in the 2005/2006 Annual Report is still valid.

We report on pending lawsuits, claims for damages and other risks in Note 8.