Sidenor 2020 Corporate Report

26 Corporate Report 2020 | About us In 2020, the COVID-19 crisis resulted in an unprecedented business scenario, in which we had to deal with an exceptional situation of great uncertainty. This crisis revealed risks of different types, such as increasing workers health and safety protection issues, staff management in a changing and unpredictable situation which did not ensure any stability in the development of industrial activity, or the security of the Company’s information systems when implementing teleworking modalities. Sidenor had to work to monitor the evolution of such risks and to adopt procedures and/or measures to minimise their impact on business. As regards the first risk, the above-mentioned protocol of action was established right from the start; it mainly aimed at combining production activity and the maximum protection of people who work at Sidenor. For greater safety, both our own staff and contracted workers had to comply with the protocol, which underwent regular updates in order to take into account changes within the Company as well as legislative changes and/or recommendations approved by the competent authorities. On the other side, Sidenor worked on implementing the legal or conventional tools available in order to manage its staff with maximum flexibility and to be able to adapt its resources to the situation and market needs at any given time (cessation of all non-essential activities or decrease in sales). In addition, Sidenor reinforced the security of its information systems so as to avoid being affected by the implementation of teleworking modalities and the significant increase in remote connections. Within the framework of Sidenor’s Risk Control and Management Policy, the Management of Sidenor regularly updates the Company’s risk map. In light of the exceptional nature of the COVID-19 crisis, it has been constantly monitoring the situation in order to promptly detect risks to the business and act fast so as to minimise their impact. Without limiting the foregoing, in 2019, the Company Management worked to identify the risks, associated with internal or external factors, to which the organisation is exposed, defining a risk map. In addition, in order to encourage supervision in this matter, a Risk Control and Management Policy was approved, which aims at establishing a general framework for action. Thanks to Sidenor’s Risk Management System, it can be reasonably ensured that all risks identified (Operations and Infrastructure, Strategy and Planning, Governance) are prevented, evaluated, submitted to continuous follow-up, and reduced to the assumption and tolerance levels defined by the Management. The main non-financial risks identified at Sidenor are the following: Risk management system