IBERSOL | Integrated Management Report 2022

CORPORATE GOVERNANCE REPORT Chapter VI INTERNAL 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 21, 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 compa- ny’s activity. The supervisory body should evalu- ate 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 VI.4. The supervisory body should provide its view on the work plans and resources allocated to the services of the internal control system, in- cluding the risk management, compliance and internal audit functions, and may propose the adjustments deemed to be necessary. Adopted 38, 50 and 51 VI.5. The supervisory body should be the re- cipient of the reports prepared by the internal control services, including the risk management functions, compliance and internal audit, at least regarding matters related to the approval of ac- counts, the identification and resolution of con- flicts of interest, and the detection of potential irregularities. Adopted 38, 49 and 50 to 55 350