The Group is exposed to risks and uncertainties due to the nature of the operations and its geographic exposure, which could affect the normal course of business and financial performance.
The primary objective of the Group’s Board of Directors and management is to ensure, through the application of proper risk management systems, that potential risks be identified on time and dealt with appropriately.
The most important risks the Group faces include:
Financial Risks: changes driven by uncertainties in the financial markets, including foreign currency and interest rate risks, credit and liquidity risks.
Risks linked to the cyclicality of the construction industry and strategic risks associated with the economic context of the markets where the Group operates, which are beyond its direct control.
Operational risks, arising from climate change and natural disasters, risks associated with production costs and risks regarding safety at work.
Risks, in the context of environmental protection and sustainable development, which are core principles for the Group. To that end, the Group applies policies over and above the prescriptions of the relevant local legislation.
Detailed information on the main risks and uncertainties to which TITAN is exposed, as well as the risk management systems applied, is provided in the 2011 Annual Report of the Board of Directors.