The Company's risk policy and risks covered by the system

Introduction

Since 2003, Ferrovial has operated using a global risk management (GRM) system that covers all its business activities around the world, including the activity of affiliated companies over which it has management capacity.

In a dynamic, highly competitive environment, this system is an important tool for the strategic management of business and contributes to the appropriate handling of the factors that can condition the achievement of medium- and long-term economic and operative targets. Ferrovial believes that a responsible, active risk policy designed from a global perspective helps to create value for the Company's activities, both for the shareholders and for the rest of the significant interest groups.

The risk policy and the management system that emanates from it are governed by the following principles:

  • The final aim of risk management is to contribute to generating sustainable profit in all business areas and activities.

  • The management system is designed from a global perspective; in other words, it integrates all the strategic and operative factors that shape the Ferrovial risk profile, including economic, regulatory and legal, socio-political, labour and environmental factors.

  • Risk management involves decision-making individuals at all levels of the organization, including Senior Management and the Board of Directors committees.

  • The functions arising from maintenance of the system and the reporting of risks are separate from the business lines, although the latter do provide their knowledge for analysing risks and establishing the most suitable management models in each case.

  • The system renders decision-making easier from a balanced, multi-criteria perspective, as it maintains standard, comparable measurement units regardless of the nature of the risk assessed.

The Company's main risks

Ferrovial operates in countries with different social and economic situations and regulatory frameworks. In this context, a range of risks arise that are considered to be inherent to Ferrovial's businesses and sectors.

In general, Ferrovial believes that significant risks are those that may compromise the safety of its employees, the profitability of its activities, the financial solvency of the company involved or the Group and the corporate reputation.

In particular, the most significant risks covered by the management system are as follows:

1. Quality risks related to deficiencies or delays in executing work or providing services to customers and users

2. Environmental risks

3. Regulatory and socio-political risks, particularly in Airports and Toll Roads and Car Parks activity

4. Financial risks, the following being highlighted as the most significant

5. Risks from causing damage

6. Other risks