IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 ternal control systems of the group. For specific business aspects there are risk areas whose management has been assigned to functional departments. Internal control and the monitoring of internal control systems are overseen by the Executive Committee. 51. Disclosure of the relationship to other committees of the Society in hierarchical dependence and/ or functional relation Not applicable as the Group does not have autonomous services. The Statutory Audit Committee evaluates the functioning of the internal control and risk ma- nagement systems, supervising its business plan, receiving periodic information on its work, evaluating the conclusions and issuing the guidelines it deems necessary. The External Auditor verifies the effectiveness and functioning of internal control mechanisms in accordance with a work plan in line with the Statutory Audit Committee, to whom also reports its conclusions. 52. Existence of other functional areas regarding competences in risk control There are central functions - Quality, Human Resources, Planning and Management control, and Financial Units – that reporting to the Executive Committee, promote, coordinate and facilitate the development of risk management processes. 53. Main Risks to which the Company and its Affiliates are exposed The Board of Directors considers that the Group is exposed to the normal risks arising from its activity, namely at the level of the restaurants. Strategic and operational risks Ibersol’s business, like any retail business, is exposed to the instability of the economic envi- ronment as well as the evolution of consumer preferences. Strategic risk management invol- ves the monitoring of macroeconomic indicators, studies of consumer trends, studies of the catering market with consumer surveys and monitoring of competition activity in the different markets where the Group operates. In the annual Planning process all these factors are reassessed and macroeconomic trends are analyzed. Internationalization of businesses, strict control of costs, launching of new concepts, distribution channels, products and promotions adapted to changes in consumer profiles are some of the initiatives aimed at mitigating this risk. With the acquisition of the Eatout Group, Ibersol has a significant part of its turnover in 165