IBERSOL | Integrated Management Report 2022

STRATEGIC FRAMEWORK Risk Management The Ibersol Group’s reality is, by the nature of its activity, highly volatile, permanently exposed to challenges, transformations, and changes, which require a fast-paced management approach. During 2022, the Group’s activity was still partially affected by the final phase of the Covid-19 pandemic, but the War in Ukraine was the event that ended up producing more comprehensive, strong, and lasting impacts. An anticipated visualisation of risks, systematically and transversally across all business areas, allowed the Group, since the end of 2021 and from the first quarter of 2022, to define strategies and develop actions to minimize the impacts of the post-pandemic and new war situation in Europe. In particular, specific mitigation measures were taken, including the strategic sourcing of some foodstuffs that would suffer from shortages and generalised price increases, as well as the negotiation of long-term energy tariffs. The risk control mechanisms established in the Ibersol Group, support- ed by the available internal management standards and information - namely plans, objectives, processes, procedures and indicators already consolidated in the Financial-Accounting, People Management, Quality, Purchasing, Logistics and Marketing areas - have been allowing a timely assessment of the different risk scenarios and their evolution. As a result, they also allow a significant and continuous reassessment and adjust- ment of strategies and plans, as formalised through the Contingency Plan, the “Plans, Programmes and Budgets” of the brands and the inter- nal review of processes and procedures. There is also a constant concern to monitor national and international sources of information, both sectoral and general, of a technical, com- mercial, or economic nature. The internal risk management process in the Ibersol Group is based on guidelines common to the main risk management frameworks, consid- ering a cyclical approach consisting of five main stages: 62