IBERSOL Annual Report and Consolidated Accounts 2017

Report on Corporate Governance Legal Ibersol, its subsidiaries and the legal business inherent to the Group have a permanent legal and advisory function dedicated to their activity, which functions in articulation with the other central and business functions, in order to ensure a previous protection of interests of the Group in strict compliance with its legal duties and obligations. Legal advice is also guaranteed, at national and international level, by external professionals of recognized competence. Sector-specific The recovery of private consumption, after the severe disruption seen in recent years, mainly in Portugal, will continue to affect sales in restaurants. To mitigate the impact on its results, the company has implemented rigorous cost control, with monthly monitoring of market trends and subsequent reviews of resource planning, in order to mitigate the impact of the consumption reduction. Operating as it does in the food service business, the company is also subject to the risk of epidemics, disruptions in raw materials markets and changes in consumption patterns, which can have a material impact on the financial statements. 54. Description of the identification, assessment, monitoring, control and risk management process As a structured approach, Risk Management is integrated throughout the Group’s planning process. Its purpose is to identify, evaluate and manage the opportunities and threats that Ibersol’s businesses face in pursuit of their value creation goals. In the context of strategic planning, the risks of the business portfolio, as well the risks of development of new businesses and the implementation of the most important projects are identified and assessed, and strategies to manage those risks are defined. At operational level the risks affecting the objectives of each business are identified and assessed, and actions are planned to manage those risks. These actions are included and monitored through the plans of the individual businesses and functional units. As regards the risks to the security of tangible assets and persons, policies and standards have been established and are monitored to ensure compliance. All units are subject to ex- ternal audits and preventive and corrective measures are taken in respect of the risks that have been identified. To ensure that the established procedures are followed, the Group’s main internal control systems are evaluated periodically. 170