02. PRISA, A GLOBAL GROUP ANNUAL REPORT 2011 to the general legal code governing shares and securities. of the Board of Directors and its Executive Committee, and he has all the powers to act in this area, delegated in him by law. The Board, under the authority of the CEO, designs the Group’s strategic Plan, in which are defined the objectives set for each of the different business areas and the proposed development and growth in accordance with the markets, both nationally and internationally. The Group’s general strategies and policies are subject to prior authorization by the Board of Directors. Furthermore, the Strategic Plan, as well as the management objectives and annual budget and investment policy, must also be approved by the Board. Compliance with the Strategic Plan and the budget is reviewed periodically, analyzing the extent to which the goals are being achieved, while evaluating deviations and imposing corrective measures. This process involves managers from all business units, as well as the general and functioning committees that forward their reports to the Executive Committee. b. Operational risks For business development, the Group has a decentralized structural organization with coordinating bodies such as the Business Management Committee, which carries out tasks of analyzing and monitoring both business evolution and the environment and operational problems of the different business units, and the Operational Efficiency Committee, aimed at coordinating the different business units of the Group. Risks in business transactions (operational, commercial, legal, fiscal and so on) are monitored by their respective organizations, by means of supervisory mechanisms at the corporate level. For example, the Fiscal Management department monitors the tax law in each of the geographical areas where the Group operates and assesses the different potential risks posed by varying interpretations by the local authorities of the prevailing tax system. Likewise, the risks inherent in the radio and television markets, which are often subject to the concession of broadcast licenses by the authorities, are monitored by the appropriate director generals, reporting at a corporate level to the Secretary General. Commercial risks, related to advertising and Risk management Risk management policy PRISA has an organizational structure and established procedures for the management of risks inherent in its business activities. The analysis and control of risk is organized within the Group’s management procedures and, as such, involves all members of the organization within a properly supervised framework, complemented by preventive actions designed to ensure the achievement of corporate objectives. PRISA carries out an ongoing assessment of the most significant risks that might affect the company’s chief businesses. To this end, the Group has designed a Risk Map – a tool providing graphic representation of risks and used to identify and evaluate the risks to which the different business areas are exposed. The parameters assessed for each risk include both the likely impact and the probability of it occurring. The identification of these risks, and the operative processes through which they are managed is the responsibility of the Group’s Internal Audit Department, which reports periodically to the Audit Committee on the results of their work. Within the framework of risk management, the principal risk factors are classified into the following categories: Control of strategic risks. Operational risks. Risks control related to financial management. Risks control related to reliability of financial information. e. Risk control related to technological, IT and infrastructural systems a. b. c. d. The control systems in place to assess, mitigate or reduce risks to the Group are: a. Control of strategic risks The day-to-day management of the company is the responsibility of the CEO, subject to the supervision 28