IBERSOL | 2019 Annual Report

Corporate Governance Report Chapter VI RISK MANAGEMENT Recommendation Degree of Compliance Corporate Governance Report VI.1. The managing body should debate and ap- prove the company’s strategic plan and risk poli- cy, which should include a definition of the levels of risk considered acceptable. Adopted 24, 50, 52 to 55 VI.2. Based on its risk policy, the company should establish a system of risk management, identi- fying: (i) the main risks it is subject to in carrying out its activity; (ii) the probability of occurrence of those risks and their respective impact; (iii) the devices and measures to adopt towards their mi- tigation; (iv) the monitoring procedures, aiming at their accompaniment; and (v) the procedure for control, periodic evaluation and adjustment of the system. Adopted 24, 50 to 55 VI.3. The company should annually evaluate the level of internal compliance and the performance of the risk management system, as well as future perspectives for amendments of the structures of risk previously defined. Adopted 24, 50 to 55 Chapter VII FINANCIAL STATEMENTS AND ACCOUNTING VII.1 Financial information Recommendation Degree of Compliance Corporate Governance Report VII.1.1. The supervisory body’s internal regulation should impose the obligation to supervise the suitability of the preparation process and the disclosure of financial information by the mana- ging body, including suitable accounting policies, estimates, judgments, relevant disclosure and its consistent application between financial years, in a duly documented and communicated form. Adopted 34 and 38 190