39
D.7 Is more than one company in the Group listed in Spain?
NO
Identify the affiliate companies listed in Spain:
Listed Subsidiary Company
Indicate whether the respective areas of activity and the corresponding business relations between them have been publicly defined in detail, as well
as the areas and relations of the listed subsidiary company with the other companies in the Group;
State any possible business relationships between the parent company and the listed subsidiary, and between the latter and other group companies.
State the mechanisms created for resolving any conflicts of interest between the listed subsidiary and the other companies in the Group:
Mechanisms for resolving possible conflicts of interest
E - RISK CONTROL AND MANAGEMENT SYSTEMS
E.1 Explain the scope of the company’s Risk Management System.
The NH Hotel Group Risk Management System applies to all of the entities over which NH has effective control.
The NH risks management model aims to identify those events which could have a negative impact on the attainment of the objectives in the
company’s strategic plan, obtaining the highest level of guarantee for the shareholders and stakeholders and protecting the group’s revenue and
its reputation.
The model established for the risk management is based on the ERM (Enterprise Risk Management) methodology and includes a set of methodologies,
procedures and support tools which allow NH to:
Identify the most relevant risks, which could affect the attainment of the strategic objectives.
Analyse, measure and evaluate said risks according to their likelihood and their impact, which is assessed from the financial perspective and in terms
of reputation.
Prioritise said risks
Identify measures to mitigate said risks according to the group’s risk appetite, which is implemented by defining risk managers and establishing
agreed action plans in the Management Committee.
Monitoring of the mitigation measures established for the main risks.
Periodic update of the risks and their assessment.
E.2 Identify the company bodies responsible for creating and implementing the Risk Management System.
Board of Directors
The entity’s Board of Directors is the body responsible for supervising the Risk Management System, according to the provisions of article 5 of the
Regulations of the Board of Directors.
Audit Committee
As regulated in article 25 b) Section 3 of the Regulations of the Board of Directors, the Audit and Control Committee supports the Board of Directors
in the effective supervision of the Company’s internal control, the internal audit, if applicable, and the risk management systems, as well as discussing
with the account auditors or audit companies the significant weaknesses in the internal control system detected in the audit.
Management Committee
The Management Committee meets on a weekly basis and is made up of the Chief Officer or heads of the general departments from each area. The
Management Committee, amongst other functions, manages and controls the risk according to the risk appetite.
NH also has the other committees:
Expansion Committee: Entrusted with examining the investment opportunities and managing the risks associated to the management of the
investment portfolio.
Investments Committee: Entrusted with monitoring and controlling the risks related to the refurbishment and repositioning projects in hotels.
Innovation Committee: Entrusted with assessing and decision-making regarding the technological resources to be implemented in order to achieve
a more efficient rendering of the service and an increase of the added value to the client.
Systems Committee: Entrusted with monitoring and controlling of the risks associated mainly with the front and back end systems and the website.
ANNUAL CORPORATE GOVERNANCE REPORT
