Risks management system

The Group has had a Global Risk Management System (GRM) in place since 2003 that encompasses all its business activities worldwide, including the subsidiaries it manages. Detailed information about the system's operation is provided in the Corporate Governance Report. The most significant risks managed by the system are as follows:

  • Quality risks

  • Environmental risks

  • Socio-political risks

  • Financial risks

  • Risks from damages caused in the provision of services

Risks and Opportunities

The material issues in corporate responsibility management at Ferrovial are those that enable:

  • Risks and impacts to be reduced and opportunities increased.

  • Weaknesses to be strengthened and strengths turned into competitive edges.

  • Responses to be provided to stakeholder expectations.

Ferrovial considers material risks the issues that may jeopardise the economic profitability of its activity, financial solvency of the company involved or the Group, its corporate reputation and the integrity of its employees. The final goal of risk management is to help generate sustainable profits in all business areas and activities.

Risks from human rights violations

Ferrovial considers it is at low risk of directly or indirectly incurring human rights violations either because of a risk country or non-standardised purchases from suppliers or subcontractors.

Country risk. Ferrovial's investement projects are conducted in OECD countries where the law guarantees full compliance with human rights.

Supplier risk. Ferrovial's auditing and supervisory procedures for Quality, Occupational Health and Safety, Environment, Management Control and Financial Control evaluate supplier conduct in the provision of services for Company operations. According to the most recent evaluation (2005-2006), internal procedures guarantee human rights risks in the areas of the environment and health and safety, key aspects of business risks today. 100% of all our suppliers currently have low risk ratings in the area of human rights. The supplier and subcontractor evaluation process is based on measuring behaviour through incidents, not prior evaluation systems.

Reputational risks

Reputational risk at Ferrovial is measured by an attribute's influence on the company's reputation model and stakeholder perceptions of Ferrovial's performance in the area. Since 2007, Ferrovial has been using the Reputation Institute's international RepTrak methodology to conduct this analysis, which includes a reputation measurement based on stakeholders' esteem, admiration, trust and feelings about Ferrovial (RepTrak Pulse) and an analysis of 26 weighted attributes clustered around 7 dimensions: Governance, Workplace, Innovation, Products/Services, Performance, Leadership and Citizenship.

The RepTrak methodology also provides Ferrovial with equivalent data on its main competitors, major suppliers and the best-known companies in Spain. This type of information is highly valuable in terms of strategy, especially in identifying competitive edges, market weaknesses and new opportunities.