business plan for 2004 - EDP

2003 - Annual Report - EDP
• Interest-rate risk management
The adoption of a strategic benchmark will lead to
changes in the methodologies and financial
management instruments, particularly with regard to
interest-rate risk and management methodologies in
an asset/liability environment. Methodologies will be
studied and implemented that, in this field in
particular, will provide progress in immunising the
Pension Fund balance sheet from the interest-rate risk.
• Management structure
Internationalisation of the business and the need to
optimise risk diversification, in addition to the
changes that the strategic benchmark will recommend
in these two areas, will require reflection concerning
the present and future management structure.
• Governance structure
A charter of good governance principles will be
adopted, which will reflect acceptance of a
management concept in areas considered structural,
including the internal control system, the monitoring
of the investment strategy, performance measurement,
custody, auditing and consultancy. Within the
framework of these principles a governance structure
will be defined and implemented taking into account
the nature of the pension plans.
• Disclosure principles
A new framework of disclosure of information on
pension liabilities and on the Pension Fund will be
adopted, taking into account the interests of the
addressees, namely shareholders, the Board of
Directors, employees, pensioners and investors.
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