Risk Governance Model
EDPR governance model is fully aligned and integrated in the EDP group risk governance model based on the concept of 3 internal lines of defence to the organization, complemented by a fourth external line of defence, in the figure of external audit and regulation/supervision.
1st Line: Business(responsibility for risk)
2nd Line: Risk(support in risk analysis & monitoring)
3rd Line: Audit(independent supersivion)
4th Line: External Supervision
Mission
Daily business conduct, including proactive risk management, in line with the established risk policies
Support in risk identification, analysis, strategy and monitoring (to support business)
Carrying out and coordinating audits, with a view to improving risk management, control and corporate governance processes
External Audit
Regulation / Supervision
Rational
Those who benefit most from risk-taking are those who should be held accountable for their risks
Given the tendency to encourage business risk-taking, it is advantageous to have a specialised and independent risk function
It is advantageous to have an independent entity responsible for verifying and evaluating the risk management and control processes
Involved areas (not exhaustive)
- Platforms and Regions
- Business Enablement Functions (with decision responsibilities)
- Risk
- Ethics & Compliance
- Investor Relations & ESG
- Safety, Security & Business Continuity
- Internal Audit
Operative Commitees
Risk Commitee
EBD
GSB via FMC
Risk management is embodied by the Risk Business Enablement Function (RISK), encompassed by overarching Centres of Excellence and Platform Business Partners (including EDPR RISK responsible), ensuring fluid articulation and communication throughout EDP Group regarding the main sources of exposure and risk mitigation measures.
A detailed description of EDPR Group’s competent bodies, as well as their respective responsibilities, is available at the document below.
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