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Likewise, he/she is in charge of the operating coordination of the measures required to apply the Code of
Conduct and to execute the decisions adopted by the Regulatory Compliance Committee. Lastly he/she is
the head of the implementation of a crime prevention programme within Atresmedia.
VI.
Heads
All the System risks and controls have identified the heads thereof, who periodically, in line with the
assessment schedule defined in each case, must implement the control procedures established for each risk.
Aside from the risk and control heads, the figure of supervisor has been defined, charged with
approving/rejecting the assessment of risks and controls performed by the heads at each time.
VII.
Test plans and proof
All controls included in the model have defined a test plan which must be executed and completed by the
control head on each of the control assessment dates defined.
Additionally, the system requires that the execution of the controls performed in each period be supported via
documentary proof. This enables the full control assessment performed by the heads to be put in place and
verified, where appropriate, and to have a documentary system of all the controls performed in each period.
E.3
Indicate the main risks which may affect the attainment of the business objectives.
STRATEGIC
Arising from external factors which may lead to changes in company objectives such as regulatory changes, in
competition, in relationships with shareholders and investors, in financial markets and others. The Atresmedia
Group's Strategic Plan includes the assessment of these risks.
OPERATIONAL
Sale of advertising slots: the group has significant updated information to analyse the changes in industry
demand, and they are anticipated by implementing integral communication plans for customers. Analyses are
performed of the environment and of the audiovisual industry to define a commercial strategy which
continually interrelates with the market and the programming objectives and contents of the grid. Control
procedures have been established with respect to negotiating processes, burden of the advertising purchase on
the systems, verification of the broadcast, valuation of advertising slots, billing and collection, with a view to
avoiding a loss of revenue and ensuring compliance with the protocols established, in particular, in order to
comply with the ICFR.
Programme production: All the production projects are approved and developed in accordance with a
programming strategy, based on a preliminary analysis of expectations, audience objectives and commercial
breaks. In order to minimise the negative impact arising from possible unsatisfactory functioning in terms of
audience figures and commercials, pilot programs and spectator and advertiser expectation studies are
performed. In this connection, procedures exist with a segregation of functions in negotiation, contracts with
producers and production orders, in the economic terms associated therewith with authorisation levels in all
the contract processes.
Broadcasting rights are acquired after the required studies have been performed of general trends and specific
programming projections, product suitability, broadcasting capacity, audience estimates, consistency with
television channel targets, pricing trends and authorised budgets. A segregation of functions exists in
negotiation, approval of acquisitions and framework agreements with distributors and the management of this
type of products, together with authorisation mechanisms in all the rights acquisition processes.
Purchases and contracts in general: Atresmedia has designed a corporate system which permits the electronic
documentation of procedures for filling out contracting applications, their estimates and their authorisation,
making them more transparent, eliminating the circulation of hard copy with sensitive information,
anticipating knowledge regarding purchases and investments so as to prepare a better plan, quantifying
undertakings assumed in contracting processes more quickly, classifying purchase processes and contracts
still to be authorised and, in short, having the work flow followed by the documents and the controls applied
thereto. The group has a purchase management tool to approve any purchase/investment made at the group,
and a Purchase Committee which assesses and authorises the purchases which require supervision and
authorisation.
FINANCIAL
These risks are related to the evolution of the exchange rate, since a significant percentage of the purchases of
broadcasting rights is made in foreign currencies. This risk is managed by the group's Treasury area.