Risk management
BME has a risk management system in place which en-
sures that any significant risks which could affect the
Group’s objectives and activities are identified, evaluated
and controlled as described in BME’s Annual Corporate
Governance Report.
The
Risk Committee
and the Internal Audit Department
assist the Board of Directors and the Audit Committee in
developing a suitable risk management programme.
The Risk Committee, under the helm of the General Man-
ager, reports to the Coordination Committee and these
two units work together to implement the risk control
andmanagement policy laid down by the Board of Direc-
tors. The Committee monitors and analyses the risks aris-
ing in the day-to-day activities of BME Group companies.
The Risk Committee has constructed an integrated risk
management system (IRMS) following the methodo-
logical framework specified in the COSO II paper. It also
maintains, in close cooperation with the Business Units
and Corporate Areas, the Corporate Risk Map. In addition
to the IRMS, the Risk Committee has formally incorporat-
ed the Internal Control over Financial Reporting (ICFR)
system. Description of the IRMS, included in the ICFR, is
available in the Annual Report on Corporate Governance
for 2012 and in the appendix issued to comply with the
Sustainable Economy Law.
At its meeting of 29 November 2012, the Board of Direc-
tors resolved to set up a Penalty Prevention System, as
described in Chapter 3 of this report.
The
Internal Audit Department
is charged with providing
senior management and the Board with information that
enables them to fulfil the company’s objectives, including
the assessment and evaluation of the efficiency of the
risk assessment tasks carried out by management. Its task
is therefore aimed at assessing and improving the efficien-
cy of the processes concerning risk management, control
and governance by identifying key risks and controls.
23
About BME
Corporate and Social
Responsibility
Report 2012
/ BME
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