Page 48 - InterEnergo - Annual Report 2020
P. 48

Interenergo                       Business report                                                                      Interenergo                       Business report

            Country and political risks relate to the unstable   Risk matrix
            economic environment and the political system in                                                                       Statement of management’s
            an individual country. The Company is present in
            numerous European markets, hence a continuous      The risks were valued by the Company in terms of                    responsibility
            monitoring of developments and swift response      probability and materiality and were accordingly
            to change is crucial for Company’s successful      classified into a matrix. The price and credit risks
            operations.  The risk of amended legislation is    are assessed the highest, whereas the interest rate
            managed by means of active participation and       risk as the lowest.                                                 The  Management  Board  hereby  confirms  the      legislation and the International Financial Reporting
            open communication with institutions and experts                                                                       financial statements for the year ended 31 December   Standards, as adopted by the EU.
            directly involved in the process of amending laws,                                                                     2020, the notes thereto as well as the accounting
            regulations and directives.                                                                                            policies applied.                                  Furthermore, the Management Board is responsible
                                                                                                                                                                                      for keeping proper accounting records and for taking
                                                                                                                                   The Management Board is responsible for the        reasonable measures to safeguard the assets of the
            Figure: Risk matrix                                                                                                    preparation of the annual report so that it gives a   Company and to prevent and detect fraud and other
                                                                                                                                   true and fair view of the financial position of the   irregularities.
                                                                                                                                   Company and the results of its operations for 2020.
                                                                                                                                                                                      Within five years after the end of the year in which
                                                                                                                                   The  Management  Board  hereby  confirms  that     the tax is to be assessed, tax authorities have the
                                                                                                                                   the relevant accounting policies were applied      right to perform a tax audit, which may consequently
                                                                                                                                   consistently and that the accounting estimates     lead to additional payments of taxes, late payment
                                                                                                                                   were prepared in compliance with the principles    interest and fines in relation to the corporate income
                                                                                                                                   of prudence and due diligence. The Management      tax and other taxes and duties. The Management
                                                                                                                                   Board also confirms that the financial statements   Board is not aware of any circumstances that might
                                                                            Price risk
                                               Currency risk                                                                       and the notes thereto were prepared on a going     result in significant liabilities in this respect.
               Probability                                              Credit risk
                                                                                                                                   concern basis and in accordance with the applicable

                                                                                      Low market                                   Ljubljana, 19 May 2021                                      Director:            Director:
                                                                                      liquidity risk
                                                               Risk of suspending operations
                                                                                                                                                                                               Blaž Šterk           Martin Dolzer
                                                                     Risk of amended  Legal risk
                                                  Organisational risk  legislation  Liquidity risk
                                               Country risk      HR management risk
                         Interest rate risk                                         Risk of misjudgement
                                                                     Political risk


            Probability                                        Materiality

             Gravity  Level of probability  Probability of realisation  Gravity  Level of importance  Impact of realisation
             5      Very frequent  At least once a week.        5      Critical        Exceeding EUR 500,000
             4      Frequent       At least once a month.       4      Very important  EUR 250,001 to EUR 500,000

             3      Occasional     At least twice a year.       3      Important       EUR 100,001 to EUR 250,000
             2      Rare           At least once a year.        2      Less important  EUR 50,001 to EUR 100,000
             1      Very rare      At least once every three years.  1  Insignificant  Less than EUR 50,000

            46    Integrated Annual Report 2020                                                                                                                                                       Integrated Annual Report 2020  47
   43   44   45   46   47   48   49   50   51   52   53