Maintenance employee of our company TGI
Maintenance employee of our company TGI
Risk management at GEB and its affiliates is aligned with the strategic priorities and is consistent with our cultural attributes, capabilities, roles and responsibilities. It is driven by a comprehensive risk management model.
We stand out for our capacity to anticipate, respond, understand and adapt to interruptions and changes in the environment, which enables us to manage and mitigate risks in a proactive manner, ensuring the results and the sustainability of each process and of each Group member company.
The Strategic Planning Department takes the lead in comprehensive risk management to enable the coordination of risk treatment plans, monitoring tools, reports and communications, which are fundamental for any unforeseen situation or event.
We identify, based on the corporate strategy and our business analysis, the associated risks, the effective actions and controls that mitigate their impact and probability of occurrence.
We also promote a risk management culture to strengthen value creation, and we take the lead in defining guidelines and methodologies for risk identification, assessment, treatment and monitoring, thereby enabling the standardization of information and the development of synergies.
This enables us to build trust among shareholders and stakeholders, by reporting with transparency the risks and their mitigation.
(102-15) Click here for additional information on strategic and emerging risksHowever, a pandemic was not within our radar of emerging topics, which produced a heightened sense of alert and cross-disciplinary and committed work at all times, the starting point of which was to restructure our risk matrix.
Every quarter, risk management results are submitted to the Audit and Risk Committee of the Board of Directors, which makes recommendations to the Board regarding the risk matrix of the parent company and its affiliates, and supervises and periodically reports on the effective application of controls to ensure that the main risks are identified, managed and communicated to the Board in a timely manner.
As part of the prospective view, we prepare for the Board of Directors, and for our stakeholders in general, we periodically assess changes in the environment and the risks of uncertainty, which were especially present in 2020. To this effect, our strategy prioritized the identification, management and control of emerging risks, under qualitative and quantitative scenarios, at the various electricity and gas businesses in which we participate, and which affect our established corporate strategies and our long-term vision.
The following are some of the most noteworthy emerging risks that we identified and that represent an opportunity for GEB:
Climate change: The availability and quality of water resources and the generation of emissions and waste at the Company are assessed in order to develop management measures that incorporate the concept of the circular economy.
Political, governmental and social instability produced by the events derived from the pandemic: GEB is an orchestrator for the development of proposals for transformation of the industry, to guarantee reactivation and stabilization, and thereby reduce and mitigate social inequality, generating income opportunities by bringing our services to the communities where we are present.
Reconfiguration of the value chain of the sector and adoption of new technologies: GEB will address these new challenges through innovation and digitalization, ensuring the continuity of its long-term vision and diversifying its investments in innovative businesses that will leverage the various services we currently provide.
Lastly, through our internal audits and the risk-based Annual Audit Plan, we assess the risks and the effectiveness of the controls in mitigating them. In this process, we assess both the design and operation of the risk controls, and we report any audit findings to provide feedback to the Risk Management System in order to take action and to continuously improve. Every year, the comprehensive risk management process, as well as the Integrated Management System, are assessed by means of internal and external audits.
We also design strategies to face a new reality, such as having most employees working at home, with the inherent risks this implies, and we have established epidemiological, ergonomic and psycho-social surveillance programs to assure comprehensive management of the pandemic and its collateral effects.
In 2020, we consolidated the comprehensive risk management model at GEB, focused on continuous improvement, strengthening of the risk culture and effective and systematic risk management.
We maintained the results of the Company’s main financial, operating and social indicators, which demonstrates fulfillment of the strategy and of our Group priorities, in general terms, within the expected ranges, despite the effects and impacts of the pandemic.
We provided support to Group affiliates whose processes were affected, for example in the distribution businesses, to enable them to recover with effort and produce a positive balance in the overall fulfillment of their objectives.
We individualized the fraud and corruption risks by identifying the causes, consequences and specific controls for each case, in order to monitor the actions taken to address them. Since these are cross-cutting risks, we adopted and adapted this identification at the subsidiaries.
We identified the importance of cybersecurity as a strategic risk for the businesses, and for this reason we enabled and approved a project for management of cybersecurity risks in our transmission assets and ensured fulfillment of our Information and Cybersecurity Management Model.
We updated our Continuity System at GEB, Transmission, Cálidda and TGI, as a key component of resilience for our businesses regarding the continuous availability of their operations and services.
We maintained the risk materialization indicators and the risk management index within the established tolerance levels.
We have the commitment of implementing the comprehensive risk management model at all Group affiliates during 2021.
Align risk management with the risk-based audits performed by the Group’s Audit Department.
Establish the model of scenarios and risk quantification to generate early warnings and actions in the areas of GEB and its affiliates.
Identify and manage the risks of the project portfolio.
Identify, assess and manage the risks and opportunities that arise in the field of cybersecurity.
Identify, assess, manage and analyze non-financial risk scenarios, specifically those related to climate change and water.
Integrate and articulate, over the medium term, the governance, risk and compliance models.
Implement a technological tool to support comprehensive management of governance, risks, and compliance.
Identify and manage positive risks and opportunities in the strategic and process components.
Strengthen the contribution of EEB Energy RE, which currently plays a basic role in the Group’s dynamics, and which has high potential to contribute in topics such as transferring risks through reinsurers in the global market.