114
CORPORATE GOVERNANCE REPORT
Sector-specific
The tenuous and hesitant recovery of private consump-
tion, after the severe disruption seen in recent years,
mainly in Portugal, will continue to affect sales in restau-
rants. To mitigate the impact on its results, the compa-
ny has implemented rigorous cost control, with monthly
monitoring of market trends and subsequent reviews of
resource planning.
Operating as it does in the food service business, the
company is also subject to the risk of epidemics, dis-
ruptions in raw materials markets and changes in con-
sumption patterns, which can have a material impact on
the financial statements.
54. Description of the identification, assessment,
monitoring, control and risk management process
Risk management is carried out with the aim of creat-
ing value by managing and controlling uncertainties and
threats that could affect Group companies from a busi-
ness continuity perspective, while taking advantage of
business opportunities.
In the context of strategic planning, the risks to the port-
folio of existing businesses, the development of new
businesses and the implementation of the most impor-
tant projects are identified and assessed; and strategies
to manage those risks are defined.
At operational level the management risks affecting the
objectives of each business are identified and assessed,
and actions are planned to manage those risks. These
actions are included and monitored through the plans
of the individual businesses and functional units.
As regards the risks to the security of tangible assets and
persons, policies and standards have been established
and are monitored to ensure compliance. All units are
subject to external audits and preventive and correc-
tive measures are taken in respect of the risks that have
been identified.
To ensure that the established procedures are followed,
the Group’s main internal control systems are evaluated
periodically.
55. Main elements of the internal control systems
and risk management implemented by the
company regarding the finantial disclosure process
The Company does not have any specific internal audit
services reporting directly to the Audit Committee (giv-
en the Latin model adopted), the necessary compliance
services being overseen by the individual departments
of the company. Organizationally and functionally, the
various units of the Group are directly responsible for
compliance services to the Board of Directors and of the
Audit Committee, whenever requested by the latter, and
the persons responsible are duly identified in the Com-
pany’s organization chart. Under the Latin model of cor-
porate governance, the individual departments of the
Company oversee the compliance services in interaction
with the Audit Committee or the non-executive director
of the Company, reporting functionally to that director,
independently of the departments’ reporting relation-
ship with the Company’s executive management.
External audit assesses and reports on the reliability
and integrity of accounting and financial information,
validating the internal control system established in the
Group and the effectiveness of the separation between
the persons who prepare the information and those
who use it and carrying out various validation proce-
dures throughout the financial information preparation
and disclosure process.
The external auditor meets with the different depart-
ments of the Group, at least twice a year to analyze and
review the internal control system, submitting a report
to the Audit Committee for subsequent discussion with
the Board of Directors, namely with the non-executive
director.
