IBERSOL Annual Report and Consolidated Accounts 2017

Report on Corporate Governance airport concession areas. The concessions are awarded by tender for a certain period of time, so the Group may or may not guarantee the renewal of these contracts, which may affect its turnover and profitability. Operating various international brands under the franchise system, the Group enters into long-term franchise agreements (20 years or 10 + 10 years) and, after the respective term, have been renewed, although there is no such requirement. The group seeks to fulfill all obli- gations associated with contracts and maintain a good relationship with franchisors as a way to minimize the risk of non-renewal. Operational risks are closely linked to the activity of restaurants: supply management (supply and logistics), stock management, fund management, and the efficiency and safety of resour- ce and asset utilization. The adequacy and scope of the control procedures are monitored and revised where necessary. Due to the specificities of the Business, there are areas of risk whose current management has been allocated to functional departments, namely: Food quality and food safety In the restaurants business, the risk associated with hygiene and food safety is of primordial importance. The management of this area of risk is overseen by the Quality Unit and is aimed primarily by adopting a responsible proactive approach, following the prevention principles, training, monitoring of indicators and continuous improvement in order to minimise risks with an impact on consumers health. The main management dimensions of this risk area are: - Qualification and selection of Suppliers and Products in food quality and safety area and a Programme of Periodic Inspections of Suppliers, Products and Services; - Ensuring the effectiveness of the Traceability System; - control of the Production Process in the units /restaurants through HACCP Systems; - System for Developing Food Safety Competencies; - Maintenance and monitoring of measurement devices; - Food crisis management System, which is used to monitor existing food warning systems at all times and take immediate action when necessary; - Continuous improvement system supported by the following tools, among others: program- me of External Audits in all Group units; programme of microbiological analyses of the end products, carried out through sampling by an authorized outside entity; complaints handling system; Mystery Client Programme and a programme of internal audits in relation to food 166