IBERSOL | Integrated Management Report 2022

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, receiving periodic information on its work, evaluating the conclusions and issuing the guidelines it deems necessary. For this purpose, the Supervisory Board gathers all the necessary information to enable it to issue an effective assessment about these matters, gathering the necessary prerequisites to issue a timely pronunciation near by the Board of directors regarding the final decisions to be made by this body within the same scope. The External Auditor verifies the effectiveness and functioning of internal control mechanisms in accordancewith awork plan in linewith the Statutory 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 Executive Committee, promote, coordinate and facilitate the development of risk management processes. 53. Identification and description of the main types of risks (economic, financial and legal) to which the company is exposed in carrying on its business. The Board of Directors believes that the Group is exposed to the normal risks arising from its activity in the restaurant business. Below are briefly presented the risks that are subject to regular analysis, assessment, and monitoring by the functional and business areas in consultation with the Board and its specialized committees. Quality and Food Safety Risks The Quality Management Department ensures most of the prevention and control measures in different areas of the Ibersol Group’s business. The risks associated with food quality and safety are very critical in the Ibersol Group’s business, since they are directly linked to the quality of the business’ core product and to ensuring the consumers’ safety and health. The monitoring and control of these risks is essentially based 314