IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT their operations are still audited by International Franchising Brands - certification process of the food safety management system under ISO 22000, a demanding international food safety standard. Hygiene and safety at work (HSW) The management of this risk area is overseen by the Human Resources Unit, which defines and coordinates training plans and the application of the rules and procedures defined in Ibersol’s HSW Manual, and articula- tes the training plans. A number of initiatives and actions are developed annually in the field of Health and Safety at Work, aiming to reinforce the commitment and involvement of all employees with the prevention and reduction of oc- cupational risks. Financial It is the responsibility of the Finance Department to manage the various financial risks inherent to the unpredictability of the markets to which the Group is naturally exposed, namely foreign exchange, interest rate, credit, liquidity and capital risks. The steps taken by the Finance Department work to minimize the adverse effects of these possible risks: a) Exchange rate risk In this regard, the Ibersol Group pursues a policy of natural hedging, using local currency financing. Since it is essentially present in the Iberian ma- rket, bank loans are mostly denominated in euros and the volume of pur- chases, outside the Euro Zone, does not assume relevant proportions. It should be noted that the main source of exposure comes from the investment outside the euro zone of the operation in Angola, which is still small and in the process of losing weight in the group’s activity. The imbalances of the Angolan economy cause a shortage of foreign curren- cy in Angola, reason why the devaluation of Kwanza is a risk to consider. The remaining financings contracted by the Angolan subsidiaries are denominated in local currency, the same in which the income is gene- rated. In view of the current limitations on payments abroad, the Group adopted a policy of monthly monitoring of credit balances in foreign currency and its full coverage with the acquisition of Treasury Bonds of the Republic of Angola, indexed to the USD. 161