Ferrovial - Annual Report 2012

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Ethical Integrity

Risk Management

Since 2009, Ferrovial has been implementing the new process of integrated risk management, called Ferrovial Risk Management (FRM), led by the company's Risk Management Department. This process identifies and assesses risks that threaten the achievement of business goals set by Management, whether financial or non-financial (Corporate Responsibility).

The whole organization takes part in the FRM process, with its main objectives being:

  • Risk identification and assessment, through a prioritization and standardized valuation exercise.
  • Adoption of corrective measures needed to mitigate the impact of risks and/or the probability of their occurring.

The process operates at different levels of the organization. Identification, assessment and comprehensive management of risks is carried out bottom-up, starting with managers working directly in the businesses at local level through to higher levels of the company.

The definition of the FRM and its components, the risk universe (strategic, operational, compliance and financial risks) and a uniform rating scale for the entire organization, is based on Ferrovial's Control and Risk Management policy, which is established by the Board of Directors and organized into a set of principles. FRM does not consider Corporate Responsibility to be a risk but a business goal to be achieved by the organization, which means that the company managers must identify and assess the risks to achieving the Sustainability goals set by Management.

The exercise of identifying risks is carried out at the same time throughout the organization, taking into account the geographical diversity of Ferrovial's activities. To carry out this exercise, 109 different business realities have been distinguished for carrying out the risk identification and assessment, and for designating the managers responsible for carrying out the analysis.

In the FRM process, the organization's risks are identified and assessed (this takes into account the potential impact on the benchmark objectives, the probability of their occurrence and the exposure of the businesses to this situation). Risk events (called contingencies in the FRM) that may have occurred in the organization are also identified and assessed.

Risk Management and Control policy

A policy on Control and Risk Management was approved in 2011. It is applicable to all those companies in which Ferrovial has a majority holding and/or management control. The policy is based on respect for Ferrovial’s Code of Conduct.

The Procedure to identify and assess risks and contingencies was formalized in 2012, with the aim of harmonizing criteria regarding methodology, information, supervisors, etc.

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This is an electronic version of the 2012 Annual Report prepared by Ferrovial, S.A. for its stakeholders, which aims to be complete and accurate. The contents of this version can be checked by referring to the print version. A copy of the print version in PDF format is available to download on this web page