IBERSOL | Annual Report 2020

CORPORATE GOVERNANCE REPORT 51. Disclosure of the relationship to other committees of the Society in hierarchical dependence and/ or functional relation The Group does not have autonomous services of Audit and Compliance. The Statutory Audit Committee evaluates the functioning of the internal control and risk management systems, supervising its business plan, receiv- ing 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 Statu- tory 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 Execu- tive 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 nor- mal risks arising from its activity, namely at the level of the restaurants. Strategic and operational risks The corporate reality of the Ibersol Group is, due the nature of its activ- ity, highly volatile, permanently exposed to challenges, transformations, and changes, which impose an accelerated management rhythm. 2020, with the Covid-19 pandemic, was a year especially representative of this reality. Ibersol’s business, like any retail business, is exposed to the instability of the economic environment as well as the evolution of consumer prefer- ences. Strategic risk management involves the monitoring of macroeco- nomic 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 analysed. Internationalization of businesses, 248