The Cellnex risk-management model is formalised in a risk-management policy approved and overseen by the Audit and Control Committee.

The risk-management model sets out the methodology for identifying, assessing and monitoring the risks as follows:

• Identification of risks
• Assessment based on impact and probability
• Development of action plans based on risk tolerance and appetite
• Monitoring

Each part of the Group is responsible for identifying, assessing and monitoring the inherent and residual risks, as well as overseeing and implementing control measures to mitigate any adverse impacts from those risks.

Cellnex has therefore used a risk-assessment matrix to identify the main risks that may affect it, classified into four broad categories: strategic, financial, operational and compliance-related. For the risks identified, each person is responsible for assessing the potential impact of the risk, taking into account the potential financial and reputational impact and implications for the organisation. The probability of the risk occurring is also assessed, and the combination of impact and probability that leads to the assignment of a level of importance to allow risks to be prioritised, response plans to be devised and the importance of each risk to be properly overseen.

The risk map is considered and approved by the Steering Committee and periodically monitored by the Audit and Control Committee, which keeps track of the most common main risks and informs the Board of Directors.

It is estimated that 2016 will see the implementation of the risk management model within the Italian company and also for it to be updated it in Spain.

GRI: G4-DMA, G4-2, G4-14, G4-45, G4-46, G4-47, G4-SO3

Ethical business management

In 2015 the new Cellnex Code of Ethics was approved, which applies to all employees and affected stakeholders, and aims to establish standards of conduct for the entire Company, based on the guiding principles set out in the following table.

This Code also regulates the Ethical Channel, managed by the Ethics and Crime Prevention Committee, which serves both for making inquiries and sending notifications of any conduct that is contrary to the Code or to any internal rule of behaviour, using any of the following means:

• The Group’s intranet.
• E-mail: canaletico@cellnextelecom.com.
• By post addressed to the Ethics and Crime Prevention Committee.
• Other channels established in the internal regulations.

Also, as a development of the Code of Ethics, Cellnex has rules for preventing corruption, published on the intranet and on the web, which define standards of conduct to be upheld in combating corruption. During 2016 it is also planned to complete the compliance project for the implementation of a crime prevention and detection model. This project will help to improve the Company’s control environment and ensure regulatory compliance.

GRI: G4-DMA, G4-45, G4-46, G4-47, G4-56, G4-57, G4-58, G4-SO3, G4-SO4

 For more information see Code of Ethics