• User applications: Training in the software facilitator for task automation.
• Skills development: Training aimed at developing competences and skills in the workplace.
• Economic/financial: Financial training and/or refresher courses in any of its functional areas, particularly relating to:
- The General Chart of Accounts approved by Royal Decree 1514/2007 of 16 November;
- The regulation for preparing Consolidated Annual Financial Statements approved by Royal Decree 1159/2010
of 17 September;
- Circular 9/2008, of 10 December, of the Comisión Nacional del Mercado de Valores (amended by Circular
6/2011, of 12 December);
- International Financial Reporting Standards;
- Recognition, valuation and impairment of financial instruments;
- Valuation and recognition of provisions and contingent assets and liabilities;
- Analysis of financial statements, and
- Internal Control over Financial Reporting System
• Markets and Financial Assets: Training in the BME Group’s markets, assets and business areas.
• IT: Training on developing and perfecting new technologies.
The various training initiatives were aimed at all employees at BME Group companies. A total of 14,114 hours of
training were given in 2012, with 326 hours allocated to the Financial and Internal Audit Departments.
2.- Risk assessment in financial reporting.
Report the following at least:
2.1. The main characteristics of the risk identification process, including risks of error or fraud, stating whether:
The process exists and is documented.
The Risk Committee has developed an integrated risk management system (IRMS) based on the methodological frame-
work specified in the COSO II paper. According to the nature of each specific risk, the following lines of action are carried
out in parallel:
• Business risks are managed on a decentralised basis; each Business Unit or Corporate Area is autonomous, and
all units and areas report to the Risk Committee.
• Corporate risks (strategic, financial, regulatory, technological, human resource-related) are managed on a
centralised basis, being addressed by a coordinated effort across the various areas, and reported on uniformly
to the Risk Committee.
In accordance with the IRMS Methodology, on a six-monthly basis the Risk Committee receives information on the
management of ICFR, which is included in the information relating to the IRMS and is submitted through the Audit
Committee to the Board of Directors of the Company. The first report on management of ICFR will be presented to the
Risk Committee in March 2013.
The process covers all financial reporting objectives, (existence and occurrence; completeness; valuation; presenta-
tion, disclosure and comparability; and rights and obligations), is updated and with what frequency.
In order to guarantee the reliability of the relevant financial information based on a criteria of defined materiality, and
taking into account all the financial information reported and disclosed, the following global objectives of the BME
Group have been taken into account:
a) Existence and occurrence: Transactions, facts and other events presented in the financial information exist in reality
and have been recorded at the right time.
b) Completeness: The information includes all transactions, facts and other events in which the Group is the affected
party.
c) Valuation: Transactions, facts and other events are recorded and valued in accordance with applicable standards.
d) Presentation, disclosure, and comparability: Transactions, facts and other events are classified, presented and
disclosed in the financial information in accordance with applicable standards.
e) Rights and obligations: Financial information shows, at the corresponding date, the rights and obligations through
the corresponding assets and liabilities, in accordance with applicable standards.
With regard to the preparation and maintenance of the corporate risk map, which includes those relating to ICFR.
213
Appendix to the Annual Corporate Governance Report
In compliance with the Sustainable Economy Law
6
Annual
Report 2012
/ BME
1...,203,204,205,206,207,208,209,210,211,212 214,215,216,217,218,219,220,221,222