101
ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2012
bers, it convenes weekly and evaluates the diverse af-
fairs related with the corporate managing of the so-
ciety, also meeting regularly with the non executive
member, sharing relevant and detailed information
over significant aspects of corporation’s life. The annu-
al Management Report describes the performed non-
Executive member activity. The Board of Directors has
no commission specialist support. There’s no notice of
any kind of embarrassment or repair to the functioning
of the corporate governance, by any corporate body,
attended the accuracy and frequency which this infor-
mation is provided to. Minutes of the Executive Com-
mittee and Remuneration Committee are prepared.
II.4.6 The Internal Audit Services and those who
ensure the compliance of the norms applied to the
company (compliance services) shall functionally
report to the Audit Committee, the General and Su-
pervisory Board or, in case of companies that adopt
the Latin model, to an independent director or the
Supervisory Board, regardless the hierarchical re-
lation that those services have with the executive
administration of the company.
The Company has not specifically internal audit servic-
es with specific functional and direct report to the Su-
pervisory Board ( given the adopted Latin model ), and
the mentioned compliance services are provided by
the respective departments of the Company. Under-
lining that, organically and functionally, the different
directive departments of the Company’s Group head
directly the compliance services nearby the Board of
Directors and the Statutory Audit Committee – namely
whenever requested by this last organ – these respon-
sible are dully identified on the company’s organiza-
tion chart in point II.3, and the respective performance
is detailed in point II.5. Stating that the governing
model is the Latin one, the compliance services are
granted by the proper departments of the Company,
and those services are assured in interaction both with
the Supervisory Board and the non-executive board
member, reporting functionally to this Board member,
independently of any hierarchical relationship that
those same departments keep with the Board of Direc-
tors of the company. Under the Auditory services, the
External Auditor meets with the different group De-
partments, at least once a year, regarding the analyses
and supervision of the internal control system, prepar-
ing the report to the Statutory Audit Committee and
to the further discussion with the Board of Directors,
namely with the non-executive member.
II.5. Description of the internal control and risk
management systems within the company, namely
over the financial information disclosure system,
as well as it’s functioning system and it’s effective-
ness.
Risk management is a component of the company’s
culture and is present in all processes; it is the respon-
sibility of all managers and collaborators at the differ-
ent levels of the organization.
Risk management is undertaken with the aim of creat-
ing value through the management and control of un-
certainties and threats that can affect Group compa-
nies from a standpoint of operational continuity, with
a view to taking advantage of business opportunities.
In the context of strategic planning, risks to the port-
folio of existing businesses are identified and evalu-
ated; new businesses and more relevant projects are
also developed and strategies to manage those risks
determined.
At operational level, management risks are identified
and evaluated regarding the objectives of each business
and actions to manage those risks are planned; they are
included and monitored in the scope of the business
plans and the functional units.
Regarding risk to the security of tangible assets and per-
sons, politics and standards are defined and a self-con-
trol compliance face to that risk is undertaken; external
audits are carried out on all units and actions are imple-
mented to prevent, identify and correct those risks.
