Abubaker Technical Services Internal Control and Risk management system consists of a set of rules, procedures and organizational structures put in place to ensure, through a suitable process of identification, measurement, management and monitoring of the main risks, that business operations are aligned with the objectives defined by the Board of Directors, which is able to identify measure, manage and monitor the main risks. The objective is to ensure the safeguarding of the company’s assets, an efficient and effective operating system, reliable information (not just financial) provided to the governance bodies and to the market, and compliance with the law and regulations as well as the Bylaws and internal procedures (in conformity with the Principle 7.P.2. of the Code).

The internal control and risk management system is based on standards that require business activities to be based on applicable internal and external rules, that they can be traced and documented, that the allocation and exercise of powers as part of a decision- making process be matched to the positions of responsibility and/or with the size and/or significance of the underlying transactions, that those parties that take or implement decisions, which record transactions and those that are required to perform the controls over such transactions provided for by law and procedures envisaged by the internal control and risk management system be different parties and that confidentiality and compliance with the privacy legislation be ensured.

The parties mainly involved in the Internal Control and Risk management system are:

• the Board of Directors
• the CEO (as the Director in charge of the Internal Control and Risk Management System)
• the Control, Risk and Sustainability committee
• the Manager in charge of financial reporting
• the Board of Statutory Auditors
• the Independent Auditors
• the Internal Audit and Compliance unit (appointed with the Internal Audit and Compliance functions), each by carrying out their duties and roles.

The Integrity Board appointed pursuant to Article 6 of Legislative Decree 231/01 supports the Board of Directors within the scope of its competence. Other subjects involved in the Internal Control and Risk Management System are the Risk Management function (whose activities will be dealt with in the successive paragraph) the General Management departments and the Management.