IBERSOL | Annual Report 2020

CORPORATE GOVERNANCE REPORT V.3.4. The nomination committee should make its terms of reference available, and should fos- ter, to the extent of its powers, transparent selec- tion processes that include effective mechanisms of identification of potential candidates, and that those chosen for proposal are those who present a higher degree of merit, who are best suited to the demands of the functions to be carried out, and who will best promote, within the organisation, a suitable diversity, including gender diversity. Not applicable 15, 27 to 29 Chapter VI NTERNAL CONTROL Recommendation Degree of Compliance Corporate Governance Report VI.1. The managing body should debate and ap- prove the company’s strategic plan and risk pol- icy, which should include the establishment of limits on risk-taking Adopted 24, 50, 52 to 55 VI.2. The supervisory board should be internally organised, implementing mechanisms and pro- cedures of periodic control that seek to guaran- tee that risks which are effectively incurred by the company are consistent with the company’s objectives, as set by the managing body. Adopted 38 VI.3. The internal control systems, comprising the functions of risk management, compliance, and internal audit should be structured in terms adequate to the size of the company and the complexity of the inherent risks of the company’s activity. The supervisory body should evaluate them and, within its competence to supervise the effectiveness of this system, propose adjust- ments where they are deemed to be necessary. Adopted 38, 50 and 51 278