IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 incidents, and strictly following all official regulatory and operational norms, diminishing the possibility of incidents, penalties, and respec- tive reputational impacts. Legal and Regulatory Risks The Ibersol Group operates in a sector that is heavily exposed to nation- al and international legislation, international best practices and norma- tive demands, as well as close and constant scrutiny by a large number of interested parties, including all sectoral, professional and labour/un- ion associations, besides that of individual consumers. In this context, the Ibersol Group established a series of resources, partnerships, and compliance verification routines that allow it whenever necessary, to access all the current legal and normative legislation that applies to its business, namely in terms of food safety, food and non-food products, restaurant operations, consumers, labour and social issues, energy and natural resources, environment and climate change. In particular, the Group has a structure dedicated to the close accompaniment of all labour-legal aspects in the markets in which it operates, and has con- tracted engineering and maintenance services that accompanies all the regulation issues that impact the valuing and depreciation of its real estate and equipment. Financial Risks Management of financial risk is conducted by the Financial Depart- ment, based on Board approved policy. The treasury identifies, evalu- ates and carries out financial risk coverage in close cooperation with the Group’s operational units. The Board provides risk management principles for risk management as a whole, and policies that cover specific areas, such as exchange rate risk, interest rate risk, credit risk, and excess liquidity investment. 69