IBERSOL • 2023 Integrated Management Report

CORPORATE GOVERNANCE REPORT 52. Existence of other functional areas regarding competences in risk control. There are Central Functions - Quality, Human Resources, Marketing, 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 coordination with the Board of Directors. 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 on developing internal skills, carrying out periodic internal and external audits, implementing and certifying specialised management systems, investing in support technologies, and engaging and raising the awareness of stakeholders. Legal and Regulatory Risks The Ibersol Group is very exposed to general and sectoral legislation and is highly scrutinised in terms of the sector’s best national and international practices. Accordingly, various resources, partnerships and compliance verification routines have been established to enable access at all times to all the current legislative and regulatory information most relevant to the business, namely on the following topics: reporting of financial and non-financial information, food quality and safety, food and non-food products, restaurant operations, consumers, employment and social matters, energy and natural resources, environment and climate change, legal-labour matters and real estate/real estate. 318