Consistent with the “controlled risk profile” strategic pillar, EDPR has defined as a priority the implementation of mechanisms of evaluation and management of risks and opportunities that may impact its business.
EDPR’s risk management processes are supported on an integrated and transversal management model that ensures the implementation of best practices of Corporate Governance and transparency in the communication to the market and shareholders. This process is closely followed and supervised by the Audit and Control Committee, an independent supervisory body composed of non-executive members.
Risk management is endorsed by the Management Team, supported directly by the risk committee and operationalized by all managers of the company. This integrated process ensures the identification and prioritization of critical risks, the development of adequate risk management strategies and the implementation of controls in order to ensure the alignment of EDPR’s risk exposure with company’s desired risk profile.
Along the entire business cycle major strategic questions are raised and grouped by risk area. Each strategic question is subject to EDPR’s risk process analysis in order to produce specific guidelines to risk managers.
After a detailed analysis of its risk exposure throughout EDPR’s wind energy development business cycle, the following risks groups were identified.
“EDPR is constantly screening into the future and taking action today, with a constant focus on improving the risk reward position of the company”
Jorge Casillas, Head of Global Risk Strategy
The following table summarizes the main risk areas of EDPR’s business and the tools it employ’s to manage these risks. Also, the table defines the main competitive advantages EDPR enjoys over other renewable operators.
The full description of the risks and how they are managed can be found in the Corporate Governance chapter.