2.
Strategic Risk Control Systems
2.1
The NH Hoteles Group has a team of professionals that analyse strategic opportunities of various types. This team selects the options best aligned with the
Group’s global strategy and submits them to the Expansion and Management Committee, and subsequently to the Executive Committee and the Board of
Directors.
2.2
The Group has identified a set of employees who in each purchase determine the policies and procedures to apply in various critical areas (human resources,
information systems, commercial management and marketing, etc.)
2.3
The Expansion Committee, which reports to the Management Committee, analyses the opportunities that arise. It comprises members from each area in
order to analyse all the opportunities and risks of the businesses that arise in the Group.
3.
Risk control systems for business, transaction control and environmental risks
3.1
The Management Committee meets on a weekly basis. It analyses the information contained in the management scorecards drawn up by the Corporate
Control Management Department to assess the development of transactions, and closely monitors aspects of the business assessment obtained through the
computer system.
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 policy of the Group in general and its Golfing activity in particular is one of utmost respect for the environment, and for this reason, it has hired the
services of an environmental consultancy for diagnosis and advice in the Group’s activities
4.
Other preventative procedures
4.1
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.
4.2
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.
4.3
Risk Map
Through its Audit Committee, the NH Hoteles Group has created a risk map, including a wide range of up to 14 types of risk, from commitments to future
income to the status of the operating permits of the hotels, via financial commitments in the form of loans.
This plan is updated annually to identify possible threats to the Group which might affect its operations.
E.4 State whether the entity has a risk tolerance leve.
NHHoteles, S.A. has a risk tolerance level, which will depend both on subjective factors, such as risk aversion, and on objective factors, consisting of NHHoteles
group’s financial and equity capacity to absorb the impact of certain risks.
E.5 State which risks have had an impact over the year .
Those inherent to the activity.
E.6 Explain the response and supervision plans for the entity’s main risks.
The Audit and Control Committee is responsible for supervising internal control, which it does by means of the Internal Audit Department, which attends the
sessions of the Audit and Control Committee whenever the committee feels this to be necessary.
The Audit and Control Committee regularly carries out the following supervisory and control functions, as specified in Article 25 b) of the Regulation of the
Board of Directors.
ANNUAL CORPORATE GOVERNANCE REPORT
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