The final publication of IDW S 16 provides, for the first time, a concrete reference framework that operationalizes the legal obligation for early crisis detection under Section 1 of the StaRUG. IDW S 16 does not create a new legal framework, but rather specifies how companies can properly fulfill the previously often abstract requirements for early crisis detection, planning, and risk management. enomyc partner and financial expert Jonas Keppler explains what the standard means in practice—and what consequences it has for business decisions.
The obligation for companies to identify crises at an early stage has been in place since 2021 with the entry into force of the Corporate Stabilization and Restructuring Act (StaRUG). Since November 2025, this has been operationalized for the first time by the standard for the design of early crisis detection and crisis management in accordance with Section 1 StaRUG (IDW S 16) – and has thus been transformed from an abstract legal mandate into a verifiable expectation of corporate management. At the same time, it has been clarified that this obligation applies across all types of companies. This means that the need for action also explicitly affects medium-sized companies.
Since the legal obligation for early crisis detection came into force, the economic environment has changed. Volatile markets, geopolitical uncertainties, and increased audit pressure from banks and stakeholders require clearly formulated expectations for corporate early crisis detection.
In this context, IDW S 16 serves as a practical reference framework for corporate management and decision-making. It replaces subjective perceptions of crisis with comprehensible criteria, structured processes, and verifiable key figures. This makes corporate management less dependent on interpretation and more aligned with clear expectations.
IDW S 16 in practice: Requirements for planning and risk management
IDW S 16 specifies the legal obligation for early crisis detection in accordance with Section 1 StaRUG. For managers or executive bodies, this means one thing above all: responsibility begins well before an acute crisis. What is required is a continuous, structured process that helps to identify, assess, and manage developments that threaten the company's existence at an early stage.
At the heart of this process is integrated, rolling corporate planning for at least twelve, and usually 24, months, which links the earnings, financial, and asset situations and systematically maps risks. All risks must be analyzed in terms of probability of occurrence, impact, interdependencies, and combination effects.
As part of the proper design of integrated planning, the standard also provides for a rolling target/actual comparison in order to identify deviations at an early stage and initiate appropriate countermeasures. IDW S 16 requires clearly defined escalation levels, depending on the type and extent of the risks. In particular, deviations that threaten the existence of the company must be reported immediately to the relevant supervisory bodies, such as the supervisory board, the shareholders' meeting, or an advisory board.
Why IDW S 16 is relevant now
Many companies are operationally sound, but reach their limits as soon as external standards are applied. IDW S 16 reflects this development and defines a common set of expectations. It creates transparency with regard to the quality of planning, assumptions, and risk management. Companies with integrated planning, consistent assumptions, and a functioning early warning system thus signal a high quality of financial management.
In addition, IDW S 16 provides a structured decision-making framework for strategic, operational, and financing-related decisions. Risks are not considered in isolation, but rather their impact on liquidity, profitability, and thus on the continued existence of the company is assessed. Strategic decisions such as investments, the future direction of the company, or refinancing plans can thus be assessed on a much more sound basis.
The ongoing documentation also creates a reliable basis for decision-making, which is also relevant in terms of liability in case of doubt.
Liability consequences for violations of early crisis detection
The liability risks are concrete and increasingly relevant. Managers or executive bodies are liable not only for wrong decisions, but also for structural deficits in early crisis detection and monitoring. In insolvency or restructuring scenarios, it is regularly examined when developments threatening the existence of the company became apparent and whether a functioning early warning system was in place. If there is no systematic approach, there is a risk of claims for damages and personal recourse claims, among other things.
Consequences for companies: Requirements for control and planning
In addition to formal obligations, IDW S 16 strengthens the quality of business decisions, especially when it comes to strategic, structural, or financing-related issues. This requires consistent planning, risk analysis, and a logical approach to measures, which must be continuously maintained. On this basis, assumptions can be reviewed, risks can be realistically classified, and decisions can be justified in a comprehensible manner.
Checklist:
Does your corporate management meet the expectations of IDW S 16?
- Is there an integrated corporate planning system (earnings, financial, and asset situation) with a planning horizon of at least twelve, and usually 24, months?
- Is the planning analyzed on a rolling basis for deviations in order to identify trends at an early stage (target/actual comparison)?
- Are significant risks systematically identified, consistently assessed, and reflected in the planning – including probability of occurrence, impact, and interactions?
- Are responsibilities, decision-making processes, and escalation levels clearly defined and documented?
- Is the documentation structured in such a way that it is comprehensible to both internal committees and external stakeholders?
When implemented correctly, IDW S 16 is suitable as a central reference framework for a company's financial risk assessment and early crisis detection. It enables a realistic assessment of future viability and increases the quality of business decisions. Companies that establish this logic at an early stage gain time, transparency, and room for maneuver – decisive factors in an increasingly challenging economic environment.
How resilient is your integrated planning?
The requirements of IDW S 16 make it clear that planning is not a formal instrument, but rather the core of professional corporate management. Consistent assumptions, transparent scenarios, and reliable documentation are crucial.
enomyc supports companies in setting up and developing powerful planning architectures – from conceptual design to operational implementation, for example using specialized planning solutions such as Lucanet. The decisive factor here is not formal compliance with a standard, but the quality of the basis for decision-making.