IBERSOL | Annual Report 2020

CORPORATE GOVERNANCE REPORT 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 strate- gies 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, poli- cies and standards have been established and are monitored to ensure compliance. All units are subject to external 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. 55. Main elements of the internal control systems and risk manage- ment implemented by the company regarding the financial disclosure process The Company does not have any internal audit services reporting di- rectly to the Statutory Audit Committee (given the classic model adopt- ed), the necessary compliance services being overseen by the individ- ual departments of the company. Organizationally and functionally, the various Directions of the Group are directly responsible for compliance services to the Board of Directors and to the Supervisory Audit Com- mittee and the persons responsible are duly identified in the Company’s organization chart, it is necessary to reaffirm that they perform in inter- action with both the supervisory board and the non-executive director 254