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Lar España implemented its enterprise risk management (ERM) system in 2015 in order to facilitate delivery of its strategic targets by ensuring that all risks to their delivery are duly and systematically identified, evaluated, managed and controlled. The ERM system manages company’s risks end to end and continuously; it encompasses each business unit and subsidiary, as well as every corporate support areas.

Risk Control and Management Policy

Lar España approved its Risk Control and Management Policy in 2015, setting down the principles and procedures for the correct assessment, control and mitigation of risks. The emanating end-toend ERM system establishes a policy for identifying, evaluating, prioritising and managing risks effectively and efficiently, factoring in the organisation’s specific circumstances and the economic and regulatory environments prevailing in its operating markets.

Enterprise Risk Management (ERM) System

Lar España’s ERM system has been implemented at the corporate level and designed to mitigate all the risks, include tax-related risks, to which the company is exposed on account of its business activities.

The ERM system’s mission is to ensure a reasonable level of assurance with respect to the company’s ability to achieve its strategic and operating targets.

Risk map

Lar España has an updated risk map illustrating the universe of risks that could affect the company. The risks listed below have been prioritised by Lar España in the wake of this risk mapping exercise, updated annually; in 2018, it managed and monitored these risks adequately, and this process will be run on an annual basis in subsequent years: