(Ferrovial) Corporate-Reputation-Reputational Risks

The reputation risk of a business is the risk that a stakeholder may form a negative opinion of the company. In order to manage this type of risk effectively, these threats need to be swiftly identified, evaluated, and managed on an ongoing basis in terms of those aspects which could pose a threat to the company's corporate reputation.

It should be recalled that risk of any type harms corporate reputation, and it can have an impact which is difficult to predict in quantitative terms.

Ferrovial considers that all those risks which compromise the viability of its various businesses are relevant; as well as those affecting their profitability and general cash flow capacity, and their corporate reputation, with special attention paid to any factor which could compromise the integrity of employees or third parties affected by the activity of their business or impacting the environment in which those activities take place. (Report on Corporative Governance).

In order to address this issue, the company has set up an integral risk management system (FRM Ferrovial Risk Management) to identify important risks, manage them and ensure that there is sufficient awareness of such threats.

Crisis Notification

Ferrovial has a Crisis Notification procedure starting on the corporate level and subsequently extending to the rest of the divisions. The goal of the procedure is to ensure that reliable information quickly reaches the organizational levels where decisions must be made in a crisis situation that may result in significant consequences or damage to employees, the public, customers, users, the environment or the company’s reputation and interests. This protocol is linked to Ferrovial’s corporate risk management (FRM). At present, Ferrovial is taking part in a study on the management of reputation risk in collaboration with CRF.