In its activities, REN is exposed to a multitude of risks which can be grouped into the following categories:
1 - Environmental risks,
2 - Risks resulting from processes:
- Human Resources;
3 - Risks related to the quality of information for decision-making:
To ensure the effective management of the risks to which the Company is subject, the company developed a specific program, whose coordination and supervision is provided by the Risk Management Committee (CGR), created in December 2010 as an advisory and support body to the board in the modeling and monitoring of the most important risks to which the company is exposed.
These risks may affect the company in multiple dimensions. After an analysis of the surrounding environment (external and internal), and considering the risk appetite of the company, were identified risk categories where the acceptability of occurrence is lower or even unacceptable. For each of these categories there are quantitative and qualitative limits to assess, in the characterization phase of corporate risks, the impact or severity of the risks.
The identified categories (dimensions) are the following, presented in descending order of criticality:
REN considers people as its main asset, and therefore doesn´t consider acceptable the occurrence of risks with high level of severity for the health and safety of its employees as well as for the employees of their contractors and service providers, forcing itself to develop and promote all measures to prevent or mitigate those risks that are within the company reach.
Considering the strong regulation and the regulatory that REN is subject to, the occurrence of risks that may result in non-compliance with rules and regulations, and the consequent imposition of sanctions, is not considered acceptable.
REN assumes itself as an environmentally responsible company, and that environmental sustainability is one of its strategic objectives. As such, the occurrence of risks which may cause irreversible damage to the environment is not acceptable.
In developing its activity, particularly in the expansion and improvement of transport infrastructure of electricity and gas, REN depends on a solid financial position and ability to obtain financing, and therefore it is not acceptable risks that could have significant financial impacts.
REN currently enjoys a solid reputation and image in the national and international markets, and is aware that the occurrence of hazards with adverse impact at this level may imply, mainly, financial losses, difficulty in attracting qualified resources and the loss of commercial position.