Risk Governance Model

The EDP Group follows a 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 both by the Risk Business Enablement Function (RISK), encompassed by overarching Centres of Excellence (CoE) and Platform Business Partners (BP), ensuring fluid articulation and communication throughout EDP Group regarding the main sources of exposure and risk mitigation measures.

EBD

RISK Leadership

CoE Corporate

CoE Counterparty

CoE Financial

Region Focal Points

Global Risk Committee

Risk Monitoring Committee

Financial Risk Committee

MT RGA

BP RISK RGA

MT Networks

BP RISK Net

MT CS

BP RISK CS

MT GEM

BP RISK GEM

MT GBS

Insurance