ANNUAL REPORT 2016
c) Credit risk
The Group’s principal activity is carried out with sales paid in cash or by debit/credit card, so
that the Group has no material credit risk concentrations. However, with the increase in sales
of the catering business, which has a significant proportion of credit sales, the Group has
started to monitor its accounts receivable more regularly in order to:
i) control the credit granted to customers;
ii) analyze the age and recoverability of receivables;
iii) analyze the risk profile of customers;
d) Liquidity risk
As already mentioned, the recent situation of the financial markets has given a new im-
portance to liquidity risk. Systematic financial planning based on cash flow forecasting in
different scenarios and for periods of more than one year has become an imperative. Short-
term cash management is based on the annual plan, which is reviewed quarterly and daily
adjusted. In line with the dynamics of the underlying businesses, the Group’s Treasury aims
for flexible management of commercial paper and the negotiation of lines of credit that are
available at all times. The policy of open dialogue with all the financial partners has allowed
the Group to maintain high standart of trust relationships. The Group at the expense of the
cost favored maintaining contracted credit lines although little used.
e) Capital risk
The Company seeks to maintain a level of own capital appropriate to its principal business
(cash sales and supplier credit) and ensure its continuity and expansion.
The balance of the capital structure is monitored based on the financial leverage ratio (defined
as net remunerated debt / net remunerated debt + equity) with the aim of staying between
35% -70%.
Environmental
This area of risk management is coordinated by the Quality Department and its main focus is
on implementing the policy deriving from the Ibersol Sustainability Principles which ensures
that processes and procedures are applied in the environment.
Adoption of good environmental management practices is a matter of concern to Ibersol’s
Board of Directors, which promotes a responsible, proactive approach to resource and waste
management.
The procedures set forth in Ibersol’s Standards Manual as regards environmental matters are
focused mainly on the rational use of electricity and the recycling of used oil and packaging.
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