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RISK MANAGEMENT

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 also transparency in the communication to the market and shareholders.

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.

It is also important to mention that this entire process is followed and supervised by the Audit and Control Committee, an autonomous supervisory body composed of non-executive members.

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RISK RELATED STRATEGIC QUESTIONS AND RISK AREAS

Along the entire business cycle major strategic questions were raised and grouped by risk area. each strategic question is subject to EDPR’s risk process analyze in order to derive specific guidelines to risk managers.

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The following table summarizes the main risk areas of EDPR’s business. the full description of each risk and how they are managed can be found in the Corporate Governance chapter.

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