Company: GIFLF
Filing Date: 2025-02-26
Form Type: 6-K
Source: 0001104659-25-017501
Chunk: 63

Company: Grifols SA
Filing Date: 2025-02-26
Form: 6-K
Chunk 63
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 Risk response Assess risks                                                    
 Monitor risks                                                                 
 APETITO AL                                                                    
 RISK                                                                          
 Risk identification and                                                       
 assessment                                                                    
 Grifols reviews its risk exposure on a regular basis. Risk owners and         
 assurance functions continuously identify risks to which the company          
 is exposed in the ordinary course of its activities that could affect the     
 achievement of its objectives. ERM utilizes these risk identification results 
 to identify risks on an enterprise level. This process is supplemented with   
 quarterly risk scans conducted by ERM to identify internal and external       
 trends. These risk scans involve extensive analysis of external information   
 sources, one-on-one discussions with management team members,                 
 senior executives, assurance functions and other employees, as well as        
 monitoring the main risks (“top risks”) identified in the previous year based 
 on the evolution of selected risk indicators. This process ensures thorough   
 and continuously updated risk identification, incorporating insights from     
 key internal stakeholders and various information sources, including          
 climate change risk evaluations.                                              
 In addition to assessing current and evolving risks, ERM evaluates            
 emerging risks that could impact the company’s ability to achieve its         
 long-term objectives over a three- to five-year horizon. These emerging       
 risks and their potential effect on the company are further analyzed to       
 determine if they should be prioritized as top risks.                         
 The identified risks are classified according to the risk taxonomy defined in 
 the Risk Control and Management Policy and evaluated in terms of impact       
 and likelihood of occurrence. To prioritize the risks, ERM completes risk     
 scoring considering the risks’ speed and interdependencies. The updated       
 list of top risks proposed by ERM is submitted for review and approval by     
 the Executive Committee, which prioritizes those risks requiring immediate    
 response and/or increased oversight. The list is subsequently presented to    
 the Audit Committee and/or the Board of Directors, providing the basis for    
 the risk management priorities for the following year.                        
 Risk response                                                                 
 Based on the risk assessment results, management evaluates the                
 appropriate responses and prioritizes mitigation efforts. By considering the  
 prioritization assessment and weighing the benefits against the costs, risk   
 owners determine the necessary measures and internal control procedures       
 to prevent, avoid or minimize risks.                                          
 For top risks, ERM identifies and evaluates the existing controls to ensure   
 that risk remains at an acceptable level within the defined risk appetite. If 
 the residual risk exceeds the defined risk appetite, the risk owners must     
 develop a risk mitigation plan. This plan must be validated by ERM and        
 the corresponding assurance function.