Risk management

The Office of Internal Control (Budimex SA) collects information on risks reported by directors of the key areas in the organisation and presidents of subsidiaries. Based on the analysis of risks received, the following are developed:

• a map of key risks for the organisation presented at meetings of the Management Board and the Audit Committee,
• a map of other risks controlled and monitored by the Directors of Budimex SA Divisions, who simultaneously perform the function of members of the Supervisory Board in subsidiaries.

For every risk, tools and activities for its minimisation are specified. Each risk is assessed at the level of inherent (before consideration of tools and activities for its reduction) and residual risk (after application of tools and activities for its reduction). The risk may be classified as very serious, serious, moderate and irrelevant with regard to its consequences and probability of its occurrence, as well as to business exposure.

The risks that are very serious and serious from the level of inherent and residual risk and key for particular areas of activities are controlled by the Management Board. Other risks, which, after applying tools and activities reducing risk at the level of residual risk, show the weight of moderate and low risk, are controlled by individual Division Directors. The risks are monitored on a quarterly basis. This approach covers financial and non-financial risks.

The key risk map includes few non-financial risks related to the availability of qualified employees and wage expectations among non-financial risks. In turn, the map of other risks included selected environmental risks.