The Board of Directors has implemented a formal Risk Management and Control process which is currently in place and which:
i. Has as general guidelines the risk management policies approved by the Board of Directors.
Explanation: Being an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., determined it is not necessary to establish a special policy for the administration concerning its risks. As these are limited and intertwined with those of Aguas Andinas S.A., a company that has a policy in this regard, which has been duly noted and adequately considered by the Company's Board of Directors. |
NO |
ii. Has a Risk Management Unit or equivalent, in charge of the detection, quantification, monitoring and communication of risks, and which reports directly to the Board of Directors.
Explanation: The Company does not have a Risk Management unit that complies with these roles, due to being a holding company with 4 employees whose only assets are the shares in its subsidiary Aguas Andinas S.A.
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NO |
iii. Has an Internal Auditing Unit or equivalent, responsible for verifying the effectiveness and compliance with the policies, procedures, controls and codes approved by the Board of Directors, and which reports directly to the Board.
Explanation: The Company does not have an Auditing unit that complies with these roles, due to being a holding company with 4 employees whose only assets are the shares in its subsidiary Aguas Andinas S.A., a company that does have such a unit.
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NO |
iv. Incorporate within the process of quantifying, monitoring and communicating both direct risks to the entity and indirect risks that may arise from the different companies of the business group to which the entity belongs.
Explanation: Being an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., the Company determined it is not necessary to establish a special policy for the administration of its risks, as these are limited and intertwined with those of Aguas Andinas S.A., a company that does have a policy in this regard, which has been duly noted and adequately considered by the Company's Board of Directors. |
NO |
v. Considers the potential impact from risks of economic, social and environmental sustainability to which the Company is exposed.
Explanation: The Company is an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., a company that for its part has placed an emphasis on risk analysis at the economic and operational levels.
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NO |
vi. Uses as a guide the principles, guidelines and national and international guidelines such as, for example, those developed by “The Committee of Sponsorship Organizations” (COSO) or contained in the “Control Objectives for Information and Related Technology” (COBIT) created by ISACA or the ISO 31000:2009 and ISO 31004:2013.
Explanation: The Company does not adopt this practice due to being an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., which does not have a formal risk management and control procedure; not withstanding, its subsidiary Aguas Andinas uses COSO as a guide. |
NO |
vii. Includes a Code of Conduct or equivalent document approved by the Board of Directors and reviewed annually, which defines the principles and guidelines that should guide the action of the company's staff and Board.
Explanation: The Company adopts this practice in part, given that it has a Code of Ethics that defines the principles and guidelines that should guide the actions of the Company's staff and Board of Directors, a code that is not reviewed annually by the Board of Directors. This Code of Ethics is available at the following address: https://www.iam.cl/en/corporate-governance/documents/code-ethics
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NO |
viii. Includes the information and ongoing training of all staff, regardless of the contractual relationship with the company, regarding the policies, procedures, controls and codes implemented for risk management.
Explanation: The Company does not adopt this practice due to being an investment company con 4 employees, and whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A.
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NO |
ix. Is reviewed and updated at least annually.
Explanation: The Company does not adopt this practice for the reasons indicated in the numbers above.
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NO |
