RA Sonae 59.indd

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We would emphasise that the Audit and Risk Management department’s responsibilities are a consequence of the Values and Principles that underpin the business strategy of the Sonae Group. In practice, this involves the following day to day activities: . constant risk management and the search for new management practices that are able to detect and correct adverse situations promptly . a set of practices that allow a systematic evaluation to be made of the true performance of the businesses and the level of compliance with the values and principles of Sonae . a work environment that minimises professional risks and that promotes the health and safety of staff, suppliers and other third parties . a dialogue with national and international partners that is guided by the principles of honesty, integrity and transparency Sonae Risk Management Process Risk management is integrated into the Sonae planning process and is based on the international standard “Enterprise Risk Management - Integrated Framework”, developed by COSO (Committee of Sponsoring Organizations of the Treadway Commission). At Sonae, we look at different levels of risk - strategic and operational - and also at its different kinds: financial, operational, technological, political, environmental, social, and governance. During this process, we identify strategic risks and opportunities that might impact our business in the future and the likelihood of occurrence. Each subholding conducts an operational analysis and implements appropriate actions related to the key issues identified. Risk management is therefore an important part of our Governance model, in relation to both statutory and nonstatutory bodies. Enterprise Wide Risk Management Approach 1 Define and establish the framework and infrastructure of Risk Management 1 . Establish targets and objectives . Define the organisation . Define a common language . Develop risk management tools and processes . Make available facilitating resources (human, financial) 2 Identify and evaluate business risks 2 . Identify risks . Sources of risks (determine the “drivers” of the risks) . Measure and assign priority to risks . Establish the current risk map . Determine the owner of the risk 5 Monitor and report on Risk Management actions 6 Information for decision making 3 Evaluate Risk Management strategies 3 4 . Determine risk tolerances and limits . Define the goal risk map . Determine the risk management strategy (develop options to manage threats or take advantage of opportunities: eliminate, reduce, transfer, accept) . Develop a risk management action plan . Integrate the Risk Management plan into the normal business planning cycle 4 Design and implement Risk Management actions 5 . Monitor progress on executing the risk management plan. . Monitor changes in the risk profile . Report on progress to risk owner, management and the Board of Directors 24 Sonae SGPS, S.A. Sustainability Report 06
The table below summarises the kind of issues that can influence our business, either directly or indirectly. In this report, we will show examples of how each sub-holding is responding to these risks. Others will be assessed and managed as the likelihood of their occurrence, market demand and our strategic approach develops. Business Risk Model Financial Risks Political and Regulatory Risks Environmental Risks 1 Social Risks Governance Risks External Risks . Interest rates . Liquidity . Financial market fluctuations Increasing EU legislation regarding: · Water pricing policies · Energy pricing policies · Insurance policies · Environmental insurance policies · Increasing limitations of access to raw materials · Environmental Taxes · New industry regulations . Climate change . Water . Energy . CO 2 2 . Waste . Land Use . Demographic change . Change in consumer needs . Community relations . Increasing importance of Intangible and traditionally non financial information for investors Business Process Risks Operational Risks · Customers satisfaction · Service quality · Brand image · Pricing · Supply chain · Food safety · Efficiency · Customer and visitor safety · Facility safety and security · Business interruption Human resources · Outsourcing · Retention · Authority limits · Leadership · Adaptability to change · Health and Safety Integrity Risks · Reputation · Fraud · Illegal behaviour Compliance Risks · Legislation and contracts · Internal Control policies and procedures · Safety, Health and Environment policies and procedures Information Technology Risks · Availability · Integrity · Confidentiality · Non-repudiation · Relevance Financial Risks · Liquidity · Credit · Exchange rates · Tax · Financial information · Planning and budget 1 Environmental Issues are becoming financial assets/liabilities, such as Water, Energy, Environmental insurance. 2 CO 2 emissions: potential extension of Kyoto protocol to the transport sector. Sustainability Report 06 Sonae SGPS, S.A. 25
Page 1: 06 Sustainability Report Sonae SGPS
Page 4 and 5: The publication of our first Sonae
Page 6 and 7: Sonae was founded in 1959 in the wo
Page 8 and 9: The Group portfolio is currently st
Page 10 and 11: 2.1. Governance Model “The issues
Page 12 and 13: . business is sustainable in the me
Page 14 and 15: © Klaus Post
Page 16 and 17: Environment in the Governance Model
Page 18 and 19: 3.1. Sonae Holding’s role in rela
Page 20 and 21: “There is no business that can ju
Page 22 and 23: 3.3. Managing New Risks: Strategic
Page 26 and 27: 26 Sonae SGPS, S.A. Sustainability
Page 30 and 31: Internal Audit reorganization and c
Page 34 and 35: Modelo Continente Managing Risks Co
Page 36 and 37: Sonaecom Sonaecom’s Business Cont
Page 38 and 39: 6.2. Eco-Efficiency Environmental a
Page 40 and 41: Waste .Reduction Reuse of Transport
Page 42 and 43: Limpo Shopping Centre recognises th
Page 44 and 45: Sonaecom Improvements in electrical
Page 46 and 47: 6.3. Business Chain The Sonae Group
Page 48 and 49: Sonaecom Sonaecom includes environm
Page 50 and 51: 6.4. Human Capital Human capital ha
Page 52 and 53: “Learning is very important for p
Page 54 and 55: Modelo Continente With more than 25
Page 56 and 57: 6.5. Stakeholder Dialogue The Sonae
Page 58 and 59: Sonae Sierra Sonae Sierra has been
Page 60 and 61: Sonaecom Stakeholder and issue anal
Page 62 and 63: 6.6. Community Involvement Sonae be
Page 64 and 65: Sonae Sierra Sonae Sierra has a str
Page 66 and 67: Sonae Capital Environmental educati
Page 69 and 70: 7. New Risks transformed into New M
Page 71 and 72: Troiaresort Troiaresort is being de
Page 73 and 74: Since 2000, a protocol has existed
Page 75 and 76:
For more information about sustaina
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