It also sets the policy to be applied by each Company department and monitors the application of the market policy for the Committee.
3.2
The Group, and particularly with regard to its principal activity (golf hotel management), has a policy aimed at maximising respect for the
environment. The engineering and environment corporate area is therefore responsible for providing the Company with the basic mechanisms
that enable it to comply with environmental legislation. The majority of its daily activity comprises direct interaction with hotels, analysis and
ensuring compliance with the specific regulations.
3.3
A project geared at analysing and improving existing controls at centres through the specific enhancement and development of the computer
tools used by the company (front-office and back-office) was initiated in 2012. It has a two-fold aim:
-
Improvement of existing controls in its daily operations: automation and simplification
-
Incorporation of new controls to supplement those that already exist.
The main objective is to reduce the risks of fraud and to reinforce existing manual controls over production through the gradual incorporation of
growing number of preventive and corrective controls.
4.
Control systems for regulatory risk
This group includes all risks associated with legislation that could affect the Company’s business, relating to drafting contracts (clients and suppliers),
compliance with legal, administrative, international, state, regional or municipal regulations, as well as renewal of rental and management agreements.
An approval procedure linking different levels within the organisation is in place, which ensures the correct approval of contracts. Furthermore, all risks
affecting this sector are periodically reviewed by the Internal Audit Department as part of its annual planning.
The company can also rely on subcontracted companies which ensure compliance with occupational health and safety, security at facilities, fire
fighting, etc.
As part of the company’s procedures, each centre has an obligatory file which must report all agreements entered into with third parties, duly updated
and signed.
5.
Other preventative procedures
5.1
Occupational health and safety
The occupational health and safety plans involve planning processes that are susceptible to causing risks and establishing the appropriate safety
measures.
The Company organises numerous training courses for employees and subcontractors.
5.2
Insurance
The NH Hoteles group follows an extensive coverage policy by taking out insurance policies for the risks to which it is exposed. It also has a policy
of continuously reviewing this coverage.
D.2 State whether any of the different types of risk (operational, technological, financial, legal, reputational,
tax…) that affect the company and/or its group have materialised during the year:
YES
If so, indicate the circumstances that caused them and whether the control systems established worked.
Risk arising during the year
The risks inherent in the activity.
Circumstances that caused it
The activities of NH Hoteles, S.A.
Functioning of the control systems
The risk control and prevention systems have been shown to function effectively, and so to date the resources employed are considered to have worked
satisfactorily.
Risk arising during the year
Financial risks.
Circumstances that caused it
Financial crisis, falling sales, impaired results.
Functioning of the control systems
The company is engaged in various corporate operations, as well as a refinancing process which it hopes to complete in the first half of 2013.
D.3 State whether there is a committee or other governing body responsible for establishing and supervising
these control mechanisms.
YES
If so, describe its functions.
Name of the committee or body
Audit and Control Committee
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ANNUAL CORPORATE
GOVERNANCE REPORT
