General Disclosure on Governance and ERM
(GRI 103-2) (GRI 103-3) (GRI 102-18)
Board of Directors (GRI 102-18)
The main tasks of the Board of Directors are to determine the company’s general policy, approve the strategy and supervise the activities. The Board of Directors is the company’s supreme decision-making body in all matters, other than those in respect of which decision-making powers are reserved to the General Meeting of Shareholders by law or the articles of association. The Board of Directors currently has fifteen members. Their professional profiles cover different areas of expertise, such as law, business, industrial operations, banking & investment banking, marketing & sales, HR and consultancy.
On 11 May 2016 the composition of the Board of Directors significantly changed. The new appointments have added complementarity, independence, competence and diversity of professional experience on the Board. One third of the Board members are female, in line with current regulations on diversity.
Bekaert Group Executive (GRI 102-18)
The Bekaert Group Executive assumes the operational responsibility for the company’s activities and acts under the supervision of the Board of Directors.
Enterprise Risk Management (GRI 102-11)
Bekaert’s 2016 ERM report includes among others, the following potential risks:
- overall pressure on profitability (e.g. general overcapacity in a weak economic environment);
- political/economic/social instability in emerging countries (e.g. Venezuela, Russia);
- globalizing competition;
- asset and profit concentration (e.g. in one city);
- intellectual property risk (overall and permanent risk);
- non-compliance risk with local regulations and with the Bekaert standards;
- wire rod price volatility and source dependency;
- evolution of environmental regulations;
- creditworthiness of customers; and
- the risk of failure of the banking system in specific countries